Recent news on advancements in biometric payments demonstrates that while the growth of the field is inevitable (the market is expected to hit $18.6 billion by 2026), there are landmines galore. These include regional differences in approaches to the tech, persistent fears about data privacy, and even geopolitical struggles. For instance, Visa and Mastercard have run into opposition for using biometric facial-recognition technology from a Chinese company that’s blacklisted in the US due to human rights concerns.
Moreover, biometrics is only the tip of the iceberg. Emerging payments channels include buy now pay later, which allows any retailer to offer instant payments both online and in-store; payments through connected devices such as wearables and cars; and real-time payments. Modern businesses must track and prepare for all these trends and more.
The Cognizant take
We keep a close eye on biometrics as part of our ongoing payments research and analysis. Rustin I. Carpenter, Global Payments Solution Leader in Cognizant’s Banking & Financial Services practice, notes that “with a major global economic shift underway, the fortunes of emerging payments face dramatic shifts—from accelerated and increased opportunity, to unprecedented volatility.”
Carpenter adds that today’s unprecedented rate of change in the payments scene, which was turbocharged by the pandemic, continues unabated.
Finally, he adds, security and data privacy concerns aren’t going away anytime soon. “The current geopolitical, economic and social environment is driving a pressing need to improve anti-fraud and cybersecurity,” he notes. Organizations must stay current with compliance-related requirements to “keep clients secure, provide an exceptional experience, and gain a strategic competitive advantage.”