Biometric Payment Card Market Expected to Reach $15,407.81 Billion by 2032

According to a new report published by Allied Market Research, titled, “Biometric Payment Card Market," The biometric payment card market size was valued at $144.25 billion in 2023, and is estimated to reach $15,407.81 billion by 2032, growing at a CAGR of 68.8% from 2024 to 2032.

A biometric payment card is a card that utilizes a sensor to capture the cardholder's fingerprint and correspond it to a digital template stored on the card. These cards deliver a convenient and secure way to authenticate at the point of sale (POS) by utilizing a fingerprint instead of a personal identification number (PIN) or signature. This yields transactions faster and easier, as well as reduces concerns about card or PIN theft. Major companies are dynamically obtaining biometric technologies that can be integrated into point-of-sale terminals or mobile payment apps. For instance, American Express has conducted internal pilots of fingerprint cards to authenticate the enrollment and payment experience and examine performance under distinct technical set-ups.

The shift towards contactless payment methods, driven by consumer demand for faster and more convenient transactions, along with the surge in cases of data breaches and identity thefts boost the growth of the global biometric payment card market. In addition, the rise in advancements in biometric authentication technology positively impacts the growth of the biometric payment card market. However, the high cost of biometric payment cards and increasing security & privacy concerns among businesses hamper the biometric payment card market growth. On the contrary, the increase in advanced information and communications technology and the rising growth of the e-commerce sector are expected to offer remunerative opportunities for the expansion of the biometric payment card market share during the forecast period.

On the basis of end-users, the retail segment dominated the biometric payment card market in 2023 and is expected to maintain its dominance in the upcoming years, owing to retailers constantly striving to improve security measures to protect against fraud, as well as the shift towards contactless payment methods in the retail sector due to their speed, convenience, and hygiene benefits. However, the hospitality segment is expected to witness the highest growth, as hotels and motels are focused on improving guest experiences, streamlining operations, enhancing security, and staying ahead of evolving consumer trends.

By region, the biometric payment card market analysis was dominated by North America in 2023 and is expected to retain its position during the forecast period, owing to increasing technological advancements such as using biometric sensors and chip technology have made biometric payment cards more feasible and cost-effective to produce. Also, the presence of numerous payment solution providers and the high acceptance of biometric payment cards have boosted the growth of the market in this region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the rapid rise in digitalization, growing proliferation of the internet, and surging adoption of smart devices & technologies, and changing consumer transactional behavior are acting as growth catalysts for the overall market which drives the growth of the market.  

The Russia-Ukraine conflict, COVID-19, and high inflation have a significant impact on the global biometric payment card market trends on every level. Russia and Ukraine are significant contributors to the global semiconductor and electronics manufacturing supply chain. In case of any disruptions in these countries, such as trade restrictions, geopolitical tensions, or disruptions to logistics, may impact the production and supply of biometric payment card components, such as biometric sensors, secure elements, and microcontrollers. This could lead to delays or shortages in the availability of biometric payment card technology, affecting manufacturers and consumers worldwide.

In addition, the conflict in Ukraine has more exacerbated semiconductor supply chain issues and the chip shortage that has impacted the industry for the past two years. Before the conflict, over 56% of semiconductor firms considered that the chip shortage would not end until 2023. However, as per semi.org, the global semiconductor manufacturing industry is projected to witness a mild recovery in capital expenditures and significant utilization rates in the first quarter of 2024. Hence, the Russia-Ukraine war may lessen the impact on the semiconductor manufacturing market by the end of 2024, which further result in the expansion of the biometric payment card market.

Furthermore, the conflict has created uncertainty and risk for businesses operating in the region, companies deal with the risk of sanctions the potential for supply chain disruptions, and the risk of doing business in a politically unstable environment. Moreover, increased geopolitical tensions can often increase the risk of cyberattacks and data breaches targeting critical infrastructure and financial systems. Biometric payment cards, which heavily depend on sensitive biometric data for authentication, may become a soft target for cybercriminals seeking to manipulate vulnerabilities in the payment ecosystem. This could result in weakening consumer trust in biometric payment card technology and eventually hamper its adoption on a global scale.

Key findings of the study

• By card type, the debit cards segment led the biometric payment card market in terms of revenue in 2023.
• By technology, fingerprint recognition led the biometric payment card market in terms of revenue in 2023.
• By end-user, the hospitality segment is anticipated to have the fastest growth for the biometric payment card market during the forecast period.
• By region, North America generated the highest revenue in 2023.

The key players profiled in the biometric payment card industry analysis are Bio-idz, BNP Paribas, Goldpac Fintech, IDEX Biometrics ASA, Infineon Technologies AG, MasterCard, NXP Semiconductors, Thales Group, Visa Inc., and Zwipe. These players have adopted various strategies to increase their market penetration and strengthen their position in the biometric payment card industry.