Market Overview

Juniper Research: Future Smartphone Payments to Rely on Software Security, with Over 1.5 Billion Users in 2023

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Number of smartphone users relying on software-only biometric
security to grow more than 250% over the next 5 years

A new report from Juniper
Research
predicts that the biggest shift in mobile payment security
will be the move towards software-based methods, which rely on standard
smartphone components. The research forecasts that users of these
methods will increase from an estimated 429 million in 2018 to over 1.5
billion in 2023. Juniper believes that this will usher in an era where
mobile payments authentication utilises multiple biometrics based on
people's device usage patterns.

For more insights on the future of mobile biometrics, download our free
whitepaper, 3
Steps to Prepare for Multimodal Biometric Payments
.

Biometrics Shift to Software

The new research, Mobile
Payment Security: Biometric Authentication & Tokenisation 2018-2023
,
found that the use of software-based biometrics, such as that offered by
voice or facial recognition, will fuel growth in smartphone mobile
payments across all price ranges. The hardware-agnostic nature of this
will be key to driving adoption, increasing biometrically-authenticated
transactions at an average of 76% per annum globally. It predicts the
major growth for this will come from Asia, with North American usage
growing at just 46% per year.

"Mobile payment security will broaden hugely thanks to the
implementation of pure software solutions,"
remarked report author
James Moar. "The key battle now will be to convince users,
particularly those in Europe and North America, that these methods are
just as secure as traditional hardware-based security."

Fingerprints: De facto or Defunct?

Juniper found that fingerprint biometrics are becoming increasingly
prevalent, with 4.5 billion smartphones using the technology by 2023.
However, with the iPhone X and other smartphones offering facial and
eye-based identification, Juniper believes that fingerprint sensors will
decline as a proportion of smartphone biometric hardware. This will
reduce from just over 95% of smartphones using fingerprint-based
security in 2018, to under 90% by 2023. Thanks also to the increase in
software-based biometrics, fingerprint sensor use will become much more
contextual, rather than the default biometric option.

Juniper Research provides research and analytical services to the global
hi-tech communications sector, providing consultancy, analyst reports
and industry commentary.

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