Fingerprint sensor technology is “reaching a crucial turning point for payment cards” which could see biometric payments add over US$5bn to global banking revenues by 2026, according to analysts at UBS.
In a note on Wednesday, the Swiss bank said they were now forecasting that biometric payment cards could reach 15% market penetration by 2026, adding that the shift will gain traction amid declining card production costs, the coronavirus (COVID-19) pandemic accelerating the need for contactless solutions and successful pilots and launches of the technology over 2021.
“In the past few years more than 23 pilots were reported with three commercial launches ongoing. In conclusion, despite the rise of mobile payment threat to the total cards volume, we believe biometric cards can fuel some growth within the payment cards market. We also provide an interactive model to size the market by [the end of 2026]”, UBS said.
In terms of potential beneficiaries, UBS said Swedish biometrics firm Fingerprint Cards will “benefit from being first to market”, while leaders in the card manufacturing space such as Gemalto, owned by French group Thales are “best positioned to capture the value of this new market”.