Mastercard and Samsung are joining forces to introduce a biometric payment card in South Korea that lets users authenticate transactions with their fingerprint. The card is set to launch later this year and is being marketed as a corporate credit card in partnership with Samsung Card, though there could be a wider rollout later on. The card’s chip integrates Samsung's technology and will be able to be used anywhere that accepts Mastercard chip cards globally.
Biometric payment cards are set to continue gaining momentum thanks to the growing demand for cashless transactions and innovations that are helping drive down issuer costs. The pandemic-driven rise of contactless payments has contributed to increased activity in the biometric card space: Visa is piloting the solution in the US and Europe, and select BNP Paribas cardholders in France will soon be able to upgrade their existing cards for biometric payment cards, as two examples. With contactless payments set to grow further, the use of biometric cards will likely follow along the same growth trajectory. In fact, UBS analysts project that biometric payment cards could capture a 15% share of the global card market within the next five years. It's worth noting that historically, high production costs have prevented issuers from introducing biometric payment cards—but that’s changing now thanks to innovations underway to help bring down costs.
Here’s why Mastercard might be diving deeper into the space:
If you aren't currently an Insider Intelligence subscriber and would like to read more content like this, here's how to gain access:
One Liberty Plaza9th FloorNew York, NY 100061-800-405-0844