How do customers perceive and trust biometric payment methods?

A successful payment system is one that provides a great sense of security. The biometric control bricks inserted into the payment system provide the user with a great deal of reassurance.

📊Failure to properly secure biometric data could lead to severe legal and financial consequences. User acceptance: Though many customers appreciate the convenience and security of biometric payments, others might be hesitant to use these systems because of privacy concerns or discomfort with the technology.

Depending on the characteristic and how the information is stored (whether as a template or raw data), some biometric characteristics could potentially reveal secondary information about an individual beyond what the biometric was initially collected for. A raw image of a facial biometric, for example, could potentially reveal health information that an individual may not want to provide, or did not consent to the collection of that information.

One of the challenges fintechs face in developing their apps is incorporating secondary layers of security. While biometrics are relatively unique and serve as a convenient vehicle to authenticate users, bad actors have gotten better over time in breaking into phones, changing passwords, and stealing assets. For instance, many have fallen victims in social settings engaged in casual conversation by being lured into using biometrics to open their phones and financial apps to explore potential stock trading opportunities. Once this happens phones are quickly snatched, passwords changed, and biometrics turned off leaving everything on the table. The better fintechs incorporate a solid secondary layer to prevent these scenarios.

With the new development of AI there is a strong fear regarding personal data protection. The ultimate one is the biometric signature. Sharing your biometric signature with any private entity puts you at risk. Clear guidelines must be implemented to ensure this data is properly protected. Data storage and how this biometric data will be used are key concerns. Operators must create a wall to ensure proper biometric data protection.

To gain trust from user, especially in payments, you have to make sure that your mobile payment infrastructure and applications follow security standard and best practices. You can start by following PCI Mobile Payment Acceptance Security Guidelines. Some certificates that you can apply: PCI DSS, PCI PA-DSS, PCI P2PE, ...

Here are the future trends I'm tracking for the upcoming years: 1️⃣ Web3 Biometric Cards for secure blockchain payments. 2️⃣ SoftPOS allowing for smartphone-based payments. 3️⃣ Enhanced security with biometric authentication. 4️⃣ Wider acceptance of cryptocurrencies. 5️⃣ Instant P2P payments for faster transactions. 6️⃣ Advanced security protocols using encryption and AI. 7️⃣ AI-driven personalized payment experiences. 8️⃣ Easier cross-border payments with new technologies. These innovations, in my opinion, promise to redefine digital transactions, emphasizing security, efficiency, and user experience.

In the purchase of digital services via mobile payments, effective use of biometrics will enable the payment provider to know if a transaction is fraudulent or not in real time. This will protect the end users from fraudsters trying to buy digital services using their handsets.