Mobile payments have already made the payments industry take note of its potential to revolutionize how we transact currently and in the future. In our post on Mobile Payments Adoption, we have also stated that the adoption of mobile payments by the consumers has been slow for various reasons. According to us, security and ease of use are the 2 main reasons for the slow adoption of mobile payments system.
The latest development which will impact the mobile payment world is the ability to integrate biometrics in your smartphone. If we take a deeper look at what this means to a regular mobile payment system user; this means not having to enter your credit card details, PIN, etc. If the mobile payments system is seeing decline in its adoption, use of biometrics will help the users overcome the ease of use hurdle.
Smartphone users do not even have to worry about the loss of their handsets mainly because of biometrics in place. There are vendors like Natural Security, who have been successful in implementing and launching biometric point of sale (POS) solution based on fiIf ngerprint recognition. The fingerprint reader connects to a contactless card to verify that the identified personal data matches the information stored on the card. This is a practically effortless payment mechanism that does not require a PIN or card and provides a great customer experience.
LTP View: What will actually make heads turn and the industry take notice of this innovation in the mobile payment space is the introduction of Biometrics in the Apple iPhone. There have been talks about its introduction but nothing has been confirmed yet. The popularity scale of Apple iPhone coupled with a Biometrics app has a potential for the mobile payments industry to be accepted by the masses. This could also mean that Apple will enjoy the First Mover advantage in this space leaving a lot of leading mobile phone providers behind in the race to dominate the mobile payments industry.