Home Technology Biometric Payment Cards Market Trends, Share, Size, Growth, Forecast 2032

Biometric Payment Cards Market

Biometric Payment Cards Market Size, Share & Trends Analysis Report By Card Type (Credit Cards, Debit Cards), By End-User (Retail, Transportation, Healthcare, Hospitality, Government) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRTE2151DR
Study Period 2020-2032 CAGR 62.5%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 196.7 Million 
Forecast Year 2032 Forecast Year Market Size USD 15,543.3 Million
Largest Market North America Fastest Growing Market Asia Pacific
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Market Overview

The global biometric payment cards market size was valued at USD 196.7 million in 2023. It is projected to reach USD 15,543.3 million by 2032, growing at a CAGR of 62.50% during the forecast period (2024–2032).

Biometric payment cards are a type of identification that analyses and recognizes people based on physical and behavioral characteristics. Fingerprints, retinal scanning, iris scanning, facial patterns, voice recognition, and body movement are among them. Biometric cards also contain smart cards with various security features, such as an optical stripe or barcode, a holographic security image, and an embedded chip. The biometric sensors in these cards provide the user with the most secure payment method, propelling the market forward. Furthermore, the contactless payment method is gradually gaining popularity, improving security and reducing payment processing time. In the financial services industry, biometric technology is gaining traction as a secure and convenient alternative to passwords and PINs. This technology is increasingly being seen as having the potential to make consumers' lives easier to manage by giving them more options for confirming their identity.

Another significant advantage of biometric payment is that it eliminates the limit or cap on contactless payment transactions. Users' fingerprints are securely authenticated, and they can enjoy the convenience of contactless payment for any amount. The biometric sensor captures fingerprint data securely stored in the card's secure chip. Furthermore, this information is neither stored on the bank's servers nor transmitted over the internet to a personalization bureau. As a result, fingerprint payments' success depends on a rigorous and privacy-friendly enrolment process. Additionally, these cards can be used with a PIN code as a fallback solution when the cardholder's fingerprint is unavailable, such as when withdrawing cash from an ATM.

Market Dynamics

Market Drivers

  • Enhanced Security and Identification System

The consistent demand for an improved security and identification system during payment processes or transactions has led to an expansion in the adoption of biometric payment systems. The biometric payment security and identification system comprise hardware, software, and services. Therefore, a contributing factor to the growing adoption of biometric payment systems is the general increase in the use of biometric systems for various applications, including entry systems and payment processes, as well as the benefits, such as seamless operation and improved end-user experience, etc.

  • Increasing Penetration of the Internet and Adoption of Smart Devices

Increased internet penetration, smart device adoption, mobile transaction volume, and digitalization are seen worldwide, particularly in developed and developing countries, which has resulted in a shift in payment mode. As a result, the adoption of digital payment methods such as biometric payments is increasing with the transition and affinity for online or digital payments. The increased security provided by biometric payment terminals is another factor driving their demand. The growing use of biometric payment terminals in the BFSI industry vertical is the most effective application of the technology, contributing the most to the global biometric payment market.

Market Restraint

  • Cashless Transaction and Low Awareness

Further technological developments have led to the introduction of stores with cashless payments, which is anticipated to present a significant obstacle to expanding and adopting biometric payment systems. The high cost associated with the biometric payment terminal system and the lack of awareness among various underdeveloped countries is both factors restraining the growth of the biometric payments market in terms of value.

Market Opportunities

  • Advancements in Biometric Technology

Biometric payment systems are point-of-sale (POS) technology that uses biometric authentication to allow a transaction or payment to occur. In addition to fingerprint biometric authentication technology, advances in biometric technology have introduced advanced biometric authentication technologies such as eye recognition, etc. On the other hand, biometric payments enabled by fingerprint authentication technology are the most widely adopted due to the ease of use and relatively lower cost associated with fingerprint identification systems. Technology has advanced to the point where a single biometric payment terminal can now support multiple identification methods, such as fingerprint, iris, palm, and others.

Regional Analysis

The global biometric payment card market is regionally segmented into North America, Europe, Asia-Pacific, and LAMEA. North America dominated the market for biometric payment cards and generated the most revenue. The regional market expansion can be attributed to the presence of numerous market participants. In North America, the increased use of contactless cards as a payment method is anticipated to generate market expansion opportunities. Asia-Pacific is home to some market leaders, including Goldpac Fintech. In addition, market participants are planning to launch biometric payment cards in Asia-Pacific countries.

Report Scope

Report Metric Details
Segmentations
By Card Type
  1. Credit Cards
  2. Debit Cards
By End-User
  1. Retail
  2. Transportation
  3. Healthcare
  4. Hospitality
  5. Government
Company Profiles Bio-idz BNP Paribas Goldpac Fintech IDEX Biometrics ASA Infineon Technologies AG MasterCard NXP Semiconductors Thales Group Visa Inc. Zwipe
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

Based on Card Type

The market is divided into credit cards and debit cards. The debit cards segment dominates the market, accounting for the majority of revenue during the forecast period. Companies involved in the biometric payment card market are testing debit cards with fingerprint sensors as part of a pilot program. Furthermore, most of these market participants have completed debit card pilots. The credit card segment is expected to experience the highest growth rate during the forecast period. Growth in the segment is anticipated to be driven by people's rising credit card usage. This adoption results from various factors, such as getting cash back, discounts, and using the bank's leverage.

Based on End-User

The market is categorized into retail, transportation, healthcare, hospitality, and government. The retail sector dominated the market and generated the highest revenue share. The retail sector is expected to experience the highest growth rate during the forecast period. The retail market has already adopted NFC technology, QR codes, and voice payment methods, creating segment growth opportunities. Additionally, retailers are increasingly adopting digital and contactless payment card methods. The hospitality sector is anticipated to experience substantial growth over the forecast period. Restaurants and hotels are now equipped with biometric digital payment systems that allow customers to pay with fingerprint scanners.

Market Size By Card Type

Market Size By Card Type
  • Credit Cards
  • Debit Cards
  • Recent Developments

    • In June 2022: Linxens Holding SAS and IDEX Biometrics ASA announced an agreement in which Linxens will become a global provider of IDEX's complete biometric smart-card turnkey solution, leveraging both companies' technologies and expertise. This allows cardmakers to develop smart cards faster by incorporating the highest-performing fingerprint sensor.
    • In June 2022: Verizon partners with Mastercard and FNBO to launch a small business credit card. Verizon Business announced that it is teaming up with Mastercard and First National Bank of Omaha (FNBO) to launch a credit card designed to bring value to small business owners.
    • In May 2022: IDEX Biometrics partnered with Verisoft to accelerate biometric smart card adoption. IDEX Biometrics ASA announced a collaboration with payment software provider Verisoft A.S. to commercialize biometric payment solutions in EMEA and globally. Verisoft delivers end-to-end smart card issuance solutions, including personalization software, digital payment solutions, card management, and loyalty systems.

    Key Players

    Biometric Payment Cards Market Share of Key Players

    Biometric Payment Cards Market Share of Key Players
    Bio-idz BNP Paribas Goldpac Fintech IDEX Biometrics ASA Infineon Technologies AG MasterCard NXP Semiconductors Thales Group Visa Inc. Zwipe Others

    Frequently Asked Questions (FAQs)

    What is the estimated growth rate (CAGR) of the Biometric Payment Cards Market?
    Biometric Payment Cards Market size will grow at approx. CAGR of 62.5% during the forecast period.
    Some of the top prominent players in Biometric Payment Cards Market are, Bio-idz, BNP Paribas, Goldpac Fintech, IDEX Biometrics ASA, Infineon Technologies AG, MasterCard, NXP Semiconductors, Thales Group, Visa Inc., Zwipe, etc.
    In the Biometric Payment Cards Market, North America has established itself as the market leader with a significant market share.
    The Asia Pacific region is projected to exhibit the highest rate of growth in the Biometric Payment Cards Market.
    The global Biometric Payment Cards Market report is segmented as follows: By Card Type, By End-User


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