Fingerprint Cards (FPC) is making the business case for biometric payment cards in the banking industry. The company noted that while consumers have historically been quite loyal to their banks (only four percent of US consumers switched in 2018), that is increasingly not the case, with a full 51 percent indicating that they would migrate to a new financial services provider to get their hands on a biometric card.
With that in mind, FPC argues that banks will need to offer competitive products and services in order to distinguish themselves from other providers and build trust with their customers. It also believes that a biometric payment card will be an attractive feature in that context. As it stands, the vast majority (77 percent) of consumers already use a more traditional contactless card on a weekly basis, and 63 percent plan to use their card more frequently moving forward.
The problem is that non-biometric cards still have contactless transaction limits, and raise concerns about security (51 percent of consumers worry about what will happen if their contactless card gets lost or stolen). A biometric payment card can get rid of both of those issues, delivering a convenient payment experience while simultaneously increasing the overall level of security. Biometric cards can also appeal to customers’ aesthetic sensibilities, helping banks solidify their brand with products that look and feel like innovative technology.
FPC then goes on to suggest that biometric cards can translate directly to increased revenue for financial institutions. Forty-three percent of consumers have reported that they would be willing to pay a higher price for a biometric card, while most banks (56 percent) plan to bundle cards with other services to help generate sales. Meanwhile, cards that boost customer retention rates would reduce the amount of money that banks need to spend to replace those who leave.
According to FPC, the COVID-19 pandemic has created more interest in biometric payment cards. The Bank Card Test Center recently cleared the company’s new T2 sensor module for use in China UnionPay payment cards.