With the global explosion of technology, traditional methods are being challenged, whether it is about identity verification to open an account, access your social media accounts or even make payments online. Online businesses and brick-and-mortar organizations will need more advanced and secure systems to accommodate the demands of consumers.
Passwords and PIN codes are well thought out and popular authentication tools that have been used for years.
But poor consumer habits are making it unsafe and vulnerable. People are using very plain and simple passwords; Also, same for multiple accounts and platforms. According to a 2017 Visa study, only a third use unique PINs or passwords for their accounts. Use two-thirds of the same information for multiple accounts, and more than once.
This habit of consumers makes their identities/accounts vulnerable to attacks, contributing to online frauds and scams.
However, it is believed that these problems are going to become a thing of the past in the coming years as mobile and online payments are on the rise, leading to the adoption of biometric verification for transactions as passwords are no longer reliable.
According to Biometrics Group Research Inc. Mobile payment transactions worldwide are expected to reach $750 billion by the end of 2020 with over 700 million users.
Core Drivers Around Biometrics
Over time, biometrics are becoming essential for businesses and organizations. Biometric verification is the latest method of verification which mainly focuses on usability, security and better customer experience, making it an essential feature for organizations.
Enhanced usability and better customer experience
Application of Biometrics is providing a new dimension for better customer experience. Unlike traditional authentication methods, users are not required to remember numerous passwords and PINs to prove their identity.
Many users have trouble changing passwords on time; Some companies prohibit customers from using alphanumeric passwords. Such a practice results in a significant increase in abandoned transactions affecting the customer experience.
From the point of view of usability and convenience, the biometric features are unique to each user.
Biometric features are easily available at any level. Plus, unlike passwords for fraudsters, these attributes are nearly impossible to fake.
Due to their uniqueness and significant security, users are not required to change their PIN and password frequently. It makes the authentication process smooth, secure and seamless, enhances the usability of the customers and enhances the user experience.
reducing fraud and fraudulent chargebacks
Password/PIN – to confirm that you are who you say you are
With the advent of technology, passwords have failed to authenticate real users; This is because passwords/PINs are easily hacked and stolen through scamming apps and phishing emails.
Biometrics verification is now a more secure method of user authentication as there is no burden on the users to remember the subtleties of the authentication process. This dramatically reduces user friction; Subsequently, it dramatically reduces online fraud and scams.
With the help of biometric verification, the entire checkout process becomes more secure and streamlined and less complicated, leading to a significant reduction in abandoned transactions when users do not remember their passwords. Every day businesses face huge losses due to fraudulent transactions and false chargebacks.
Using a traditional password does not define whether the user is authentic or not. However, the implementation of biometrics, specifically facial verification, not only allows authentic and authorized users to access the portal, but it also restricts consumers to verify their identity before initiating transactions.
eCommerce business commonly encounters credit card fraud, which results in chargebacks. According to statistics, the e-commerce industry suffered an estimated loss of $6.7 billion in 2016 due to chargebacks.
71% of the loss (ie, $4.8 billion) was due to friendly/chargeback fraud. Practicing biometric verification helps the platform to prevent users from making false chargebacks and fraudulent transactions with someone else’s card/accounts.
Increase in adoption of biometrics
As the trend of online payments is on the rise, many applications and organizations have started opting for biometrics solutions to protect their payments and businesses. Let us take the example of some well-known companies that have successfully adopted biometrics.