Apple Pay to drive biometric transactions ‘to $5 bn by 2019’
27 October 2015 15:42 GMT

Increasing usage of Apple Pay will encourage growth of payments authenticated by biometric security to a value of $5 billion in transactions by 2019, according to British research group Juniper.

The findings were released as part of a new report, “Mobile Identity, Authentication & Tokenisation 2015-2020”, which also stated that Apple Inc. and Samsung will account for $130 million in transactions that year, primarily in the United States, United Kingdom and South Korea.

Currently, these are the only companies using fingerprint security for transactions on a broad scale. But the report argued that incorporation into additional mobile wallets would be spurred by a greater availability of fingerprint scanners in mid-range smartphones.

However, there were also warnings over maintaining the sanctity of biometric data in the report.

“When a password or PIN is hacked, the consumer can simply get a replacement,” said Windsor Holden, author of the research study, in a statement. “When biometric data–fingerprint, iris [scans], facial [telemetry]–is stolen, the consumer’s online identity could be irretrievably compromised.”

The research pointed out that the greater prevalence of cybercrime – more than 1 billion online records were exposed by data breaches in 2014 – meant that tokenisation was becoming an increasingly attractive proposition for acquirers and processors.

It argued that the tokenisation process – wherein data with no intrinsic value replaces high value cardholder data – would significantly reduce exposure to fraud. Furthermore, with hackers merely obtaining tokens which are meaningless in isolation, the scale of attacks on sites might also decline.

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