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BizReport : Ecommerce archives : June 05, 2019

Study finds consumers reluctant to embrace biometrics

It's passwords over biometrics when it comes to consumer preferences. That's the word from new Paysafe data which found that while just over half of global consumers have used some form of biometrics to make a payment in the past, nearly as many (56%) worry that biometrics will increase identity fraud, putting their personal information at risk.

by Kristina Knight

Only about one-third of consumers (37%) agree that biometrics are "more secure" than traditional secure payment options, and one-third (31%) worry that a fingerprint "could be cloned" for use on fraudulent purchases.

Rather than embrace biometrics, researchers with Paysafe's Lost in Transaction report found consumers' preferences run to passwords (81% prefer), and those sites that don't ask for a password are a worry, too. About two-thirds (66%) of consumers say they worry about making payments digitally without being asked for a password.

"Biometrics are a huge opportunity for the payments industry to combat the increasing risk of card not present fraud," said Daniel Kornitzer, Chief Business Development Officer, Paysafe Group. "However, it's not surprising that there is reluctance among consumers to use biometrics as a form of payment authentication when passwords and PINs have been the central pillar of financial data security for at least 20 years. News headlines are also dominated with fraud and hacking scandals so the public are aware of the risks involved when it comes to adopting new services. To overcome this, consumer education is imperative and with SCA coming in September, consumers will need to be aware of the benefits to ensure acceptance and adoption. We've lived in a password-driven world for many years now and consumers aren't fully prepared to let go of what they know."

Other interesting findings from the Paysafe report include:

▪ 45% of consumers don't want businesses to have access to their biometric details
▪ 35% say they "don't know enough" about biometrics to feel safe using it
▪ 54% of British consumers have used biometrics to make a purchase
▪ 61% say biometrics are "fast and efficient" payment options

What kinds of biometrics have consumer used thus far? About one-third (38%) have used a fingerprint, 17% facial recognition, and 11% voice-activated tech.

More Paysafe data can be accessed here.

Tags: biometric payment, digital payments, ecommerce, ecommerce payments, Lost in Transaction study, online payments, payment trends, Paysafe

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