COVID-19 brought a drastic change in the way we make payments observed Bahaa Abdul Hadi. Cash is being taken over by newer technologies such as QR codes, digital wallets and cards. There are even more sophisticated options like Buy Now, Pay Later (BNPL), Real-Time Payments (RTP) and Electronic Transfer of Money (ETF) payments available.
The rise of contactless transaction has increased the need for heightened security measures. Biometrics have contributed much to this area of concern through their ability to identify accurately.
Fingerprint scans are particularly gaining popularity. In the future, more and more companies will adopt biometrics to safeguard the interests of their customers.
Benefits of Biometric Technologies
The use of facial, fingerprint and retina scanners makes identification accurate. Financial companies use methods like Strong Customer Authentication (SCA) to confirm the identity of their customers. This prevents any fraud from happening.
Scanning of different body parts have their merits and falls. Fingerprint scans, for example, store the fingerprint data on the phone sensory chip. This data is not shared with the bank, making the data more secure. Fingerprint scans also provide high accuracy.
Iris/retina scans and facial recognition are somewhat less accurate. While popular, facial recognition can fall prey to AI-generated deepfakes and images. Iris scans on the other hand are impractical, sometimes causing readability difficulties.
Biometrics play a special part in the growth of digital currency. By incorporating this technology, blockchains and digital assets can provide universal access, immutability and accountability. Financial institutions will be able to see the opportunities that blockchain technology can create.
Implementation of Biometric-Enabled Payments
Biometrics have many uses in making payments. They make transactions convenient, without requiring the presence of the customer. Here are some of its applications:
Secure Net Banking
Biometrics turn you into your banking password. Whenever access to a transaction is required, biometrics confirm the user identity by comparing it to an accurate model in their database. They are safer than passwords and PIN codes.
Safer Digital Wallets
The use of biometrics makes remembering passwords a thing of the past. At the same time, they offer tighter security to your digital wallets. Customers use their digital wallets for more than making payments. They store their public transportation cards, e-tickets, boarding passes and more in digital wallets.
Boosted Financial Inclusivity
There are many people who do not have access to digital transactions. Factors like old age, mental disability or illiteracy can prevent customers from using more convenient means of making payments. Biometrics makes authentication simple. Even illiterate people can understand and use the technology.
Conclusion
Biometrics will only make digital payments more convenient and safer. It is a win-win for both customers and financial institutions. The article has been authored by Bahaa Abdul Hadi and has been published by the editorial board of Identity Herald. For more information, please visit www.identityherald.com
