Market research firm Research and Markets has released a new report indicating that the out-of-band (OOB) authentication market is set for significant growth over the next few years. The “Global OOB Authentication Market 2014-2018” report suggests that the industry is headed for growth of 23.16 percent (CAGR) between 2013 and 2018.
OOB authentication basically uses two different networks for authentication, combining credentials like passwords and PINs with mobile SMS tokens and biometric technology, very much like the FIDO Alliance’s U2F standards. The report notes that OOB is currently increasing in popularity, with the main market driver being an ‘increase in advanced and complex threats’. This seems to accord with the firm’s recent research finding that as commerce moves further and further into the online world – via mobile commerce platforms such as Apple Pay, for example – so, too, does fraud, thereby necessitating new and advanced security systems such as those offered by biometric technology.
Indeed, Apple seems to have thought it important to use fingerprint-scanning technology built into its mobile phones to help shepherd consumers into the new terrain of mobile commerce, and smaller mobile manufacturers are quickly jumping on the bandwagon. As that process unfolds, it’s perfectly understandable that OOB authentication systems would see market gains.