Analysts at UBS believe that biometric payment cards could capture a 15% share of the card market within the next five years. The Swiss bank says increasing penetration of fingerprint sensor cards will drive $5 billion in revenue by 2026, according to Finextra.
The UBS analysts believe that the biometric technology could help payment cards retain relevance in the face of mobile payment alternatives.
UBS said: “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.”
It points to declining production costs, the rise of the touch-free economy and a number of successful commercial pilots over the past year in its rationale.
Although the economic benefits of raising the contactless payment method are plain to see, there are security fears. Fingerprint sensor technology embedded in cards could overcome this limit and boost spending.