Mobile Biometrics to Disrupt the Global Payments Market Securing 65% of all MCommerce Transactions by 2020
DENVER, July 15, 2015 /PRNewswire/ — Acuity Market Intelligence reports that mobile biometrics, forecast to generate $34.6 billion in annual revenue in 2020, will significantly disrupt the global payment market by providing alternative means of securing and processing mobile transactions. Biometrics will lower both the risk and cost of payment processing as Acuity projects they will be used to authenticate nearly 65% of all mCommerce transactions in 2020. This represents 126 billion biometric payment transactions generating more than $1.1 trillion in consumer mCommerce purchase value.
According to Maxine Most, Acuity Market Intelligence Principal and lead analyst, “As mobile transaction volume increases, so too will the number of transactions that require biometric authentication. This increased level of security will be driven by the rise of identity theft and fraud, new payment, service, and information ecosystems that offer greater anonymity to consumers, and by consumer desire to maintain greater control over personal data and enhance their privacy.”
“Billions of payments will be secured by a new class of payment processors that manage risk through biometric identity services as consumers are authenticated and transactions authorized with much lower risk than traditional payments,” says Most, a biometric identity expert with fifteen years of intensive focus on this now burgeoning marketplace.
“Biometric-based real-time risk assessment will also transform payment processing allowing consumers to withdraw funds directly from consumer bank and mobile money accounts via their mobile devices while enabling merchants to issue direct consumer credit on demand,” Most says. “This has the potential to totally disintermediate traditional payment methods, such as credit and debit cards, out of the payment marketplace.”
Acuity forecasts that the total biometric transaction volume, including both payment and non-payment transactions, will exceed 800 million annually by 2020 with 35% of these transactions authenticated via biometrics embedded in mobile devices and 65% via biometric apps downloaded by consumers.
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