Biometrics-backed mobile money and facial recognition markets to grow as everything goes contactless
The biometric facial recognition market will be boosted by the COVID-19 pandemic, according to an update from Markets and Markets. The market will jump from $3.8 billion this year to $4.5 billion by 2021, a 17.1 percent increase, according to the firm, compared to pre-pandemic estimates of 13.5 percent growth to $4.2 billion.
Government spending on security and public safety and increased demand for contactless identity verification are expected to drive the market upwards. The Asia-Pacific region is forecast for the highest growth, and the development of NEC’s facial recognition-based iQuarantine is noted among recent developments impacting the market.
Biometrics powering rapid mobile money market growth
Digital wallets backed by biometrics and QR codes have become increasingly popular in the global mobile money market since the beginning of the pandemic, and the market forecast to rise at a 21.4 percent CAGR from 2020 to 2030 by Future Market Insights.
The analyst firm says steps taken by countries with major economic potential to enable digital payments has spurred the market, and smartphone and internet penetration will continue to encourage adoption. Demand for contactless payments in general is growing, according to the “2020 Analysis and Review Mobile Money Market by Application – Bill Payments, Money Transfer, Ticket Payments etc., for 2020 – 2030” report.
Digital wallets rely on the onboard biometric capabilities of mobile devices, such as fingerprint scanners, facial and iris recognition, and single sign-on (SSO) technology utilizing biometric security, according to the report. Multi-factor authentication combining passwords or PINs with fingerprint biometrics are also being adopted by financial organizations.
South Asia and the Pacific region are expected to hold the largest share of the market, buoyed by continued e-commerce growth. The entrance of tech giants to the market with services like Google Pay, Apple Pay and Samsung Pay could also impact the market.
FMI says the mobile money market grew at roughly an 18 percent CAGR over the past two years.
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