The mobile biometrics industry could generate as much as $34.6 billion in annual revenue by 2020 and could disrupt the payment industry around the globe — chiefly through offering alternative means of both securing and processing mobile payments, Acuity Market Intelligence said Wednesday (July 15).
In a release detailing its projections titled “The Global Biometrics and Mobility Report: The Convergence of Commerce and Privacy,” the research firm said that biometrics could authenticate roughly 65 percent of all mobile commerce transactions five years from now — and that would amount to as many as 126 billion payment transactions, translating to more than $1.1 trillion worth of purchases.
Acuity further estimated that the total biometric transaction volume — which would extend to include transactions that would cover payment and non-payment — would exceed 800 million annually by 2020. Of that tally, 35 percent would be secured by biometrics that would be embedded in mobile devices; the remaining 65 percent would be downloaded as apps.
Maxine Most, an Acuity Market Intelligence principal and lead analyst, said in the release: “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.”
“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 added in the statement. “This has the potential to totally disintermediate traditional payment methods, such as credit and debit cards, out of the payment marketplace.”
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