Biometrics is to many seen as the ultimate in high tech security, enabling access to systems through the blink of an eye or the touch of a finger. However, the technology is becoming less science fiction by the day as the price of hardware drops and devices become increasingly commonplace. In their latest report, 'Biometrics and Identity Verification, Ready for Prime Time?', Mercator Advisory Group investigates the potential of biometrics in the consumer payments industry.
Nick Holland, Director Emerging Technologies Research and co-author of the report determines that the one to one marketing potential of biometrics as seen in 'Minority Report' will not be hitting the high streets anytime soon:
"Biometrics are a highly valuable tool in assisting with the verification of an individual's identity, but will not be used for consumer payments in their own right for some time. We'll see them more frequently as a second or third factor of authentication, used in conjunction with something we have, such as a credit card and/or something we know, such as a password or PIN, but not by themselves..."
The 37 page report analyzes each of the common biometric types in use in today's security systems and assesses which applications are most applicable to the consumer payments industry based on their individual strengths and weaknesses. The report also highlights current rollouts of biometric technology for consumer payment applications and considers the factors that those planning to invest in biometric systems really need to consider.
"It's not just about purchasing the hardware and plugging it in, it's about considering the environment it will be used in and for how long -- biometrics rely on good, clean, accurate readings and a typical POS terminal will be in use for five years or more. The biometric hardware needs to keep up with the same level of abuse and must consistently deliver time after time. If not, users will simply revert to tried and tested payment vehicles such as card, check and cash..." says Holland.
Table of Contents
- 1. Introduction
- 2. Why Biometrics?
- 2.1. Increased security
- 2.2. Increased convenience
- 2.3. Fraud detection & deterrence
- 2.4. Loyalty and Marketing Applications
- 3. Biometric Systems ? An Overview
- 3.1. Identifying or Verifying?
- 3.1.1. Biometric Verification Systems
- 3.1.2. Biometric Identification Systems
- 3.1.3. When are verification and identification appropriate?
- 3.2. Logical or Physical Access?
- 3.2.1. Physical Access Systems
- 3.2.2. Logical Access Systems
- 3.3. Metrics in Biometrics
- 3.3.1. False Match Rate (FMR)
- 3.3.2. False Non Match Rates (FNMR)
- 4. The Technology
- 4.1. Commonly Used Biometrics
- 4.1.1. Fingerprinting
- 4.1.2. Hand Geometry
- 4.1.3. Iris Scanning
- 4.1.4. Facial Scanning
- 4.1.5. Signature Recognition
- 4.1.6. Voice Verification
- 4.2. Summary of Biometric Technologies
- 5. Commercial Applications of Biometrics in the Consumer Payments Industry
- 5.1. Diminishing the odds
- 5.2. Check Cashing
- 5.3. Cash, Card or Finger?
- 5.4. Beyond Fingerprints ? Biometric Exotica
- 6. Conclusion - Reality Check
List of Exhibits:
- Exhibit 1: A Generic Biometrics Model
- Exhibit 2: Correlation between False Match Rates and False Non-Match Rates
- Exhibit 3: Fingerprint Minutiae in Detail
- Exhibit 4: Relative Strengths and Weaknesses of Fingerprint Scanning Technologies
- Exhibit 5: Comparison of Strengths and Weaknesses of Major Biometric Technologies
- Exhibit 6: Comparative Size of Average Biometric Templates
- Exhibit 7: Market Share by Technology, 2003 ($ Millions)
- Exhibit 8: Predicted Biometrics Revenues, 2002-2007
- Exhibit 9: Reducing the Odds ? One, Two, Three and Four Factor Authentication
- Exhibit 10: Hypercom POS Terminal with attached biometric fingerprint scanner
- Exhibit 11: Pay By Touch Terminal & BioPay bCheck fingerprint scanner
- Exhibit 12: Ultra-Scan Fingerprint Scanner
- Exhibit 13: 'Bud' and 'Stella' Concept ATMs.
