Migration from traditional cash-only payments to electronic payments is happening at an impressive speed. Furthermore, this technological revolution comes with unforeseen innovations like biometrics, which will change our understanding of payments forever.
Businesses and individuals everywhere are preparing to embrace biometrics authentication. So, electronic payments systems like Global Private Payments are rushing to include it among their services. The exact day when we will adopt biometrics in payments is unclear, but nevertheless, imminent.
What Are Biometrics and Authentication?
Financial services are under constant threat of theft, fraud, and money laundering. Therefore, every technological innovation aims at increasing security for both institutions and account holders.
Authentication through biometrics is the most recent advent in financial security. Its purpose is to allow people to access their financial records through their unique biological data. Simply put, you are the only one to access your accounts because the password is your body.
Biometrics may replace other authentication details, such as ID cards, PINs, passwords, or tokens. Each of these methods is susceptible to copy, theft, and misrepresentation. Some believe that biometrics authentication will be the standard way of financial access for people worldwide by the end of this decade.
How Will Biometrics Authentication Work?
This high-security feature will be so advanced that it will replace even current authentication methods. Also, it will involve only the unique biological characteristics of every person. Among them are digital fingerprinting, facial identification, voice recognition, and iris identification technology.
Here’s an example of how it will work:
Let’s say you are about to make an electronic payment with your credit card. Before the payment receives clearance, you need to identify as the cardholder through biometric details. The financial system already has this data, which you only need to confirm. And, you’ll be able to do so through one of the features above.
How Biometrics Will Impact Payments
It’s too early to say how authentication through biometrics will impact our day-to-day financial dealings. Nevertheless, we can try to imagine how this technology will shape the future of payments.
Firstly, people will most likely enjoy the convenience of not having to remember all their accounts’ details. For instance, they will no longer know their complex passwords, PINs, and other information by heart.
Secondly, they may not have to struggle with transaction validations as they do now. In some parts of the world, banks require the additional personal information to accept transactions. They do so to reduce fraudulent actions. However, thanks to biometrics, they will process payments faster and with less hassle for their clients.
Lastly, biometrics will make transactions more secure. No two people have the same fingerprints, eyes, voice, or heartbeat. Therefore, fraudsters won’t use bank accounts they don’t own or credit cards they steal. Without their legal owner’s validation through biometrics, most financial instruments will be inaccessible.
As biometrics technology advances, more electronic payments services will seek to add to their long list of services.