Card-Embedded Biometric Authentication is to PIN What EMV is to Magnetic
San Francisco, CA, August 25, 2016: Securing card and mobile wallet transactions while meeting customer’s demands for streamlined experiences requires a variety of solutions that reach beyond what happens at the payment terminal. Today Javelin Strategy & Research released The Future of Cardholder Verification Methods: Beyond Chip and Signature, which explores an array of authentication solutions for point-of-sale incorporating rich customer intelligence, friction-free risk evaluation, and on-device authentication.
Remaining with PIN and signature for physical card transactions will simultaneously frustrate cardholders and satisfy fraudsters. The industry must embrace alternative approaches to cardholder verification methods (CVM), including biometrics. Fingerprint authentication, one form of biometrics, is gaining consumer’s confidence. Almost half of U.S. consumers believe it is effective (49%) and 65% of consumers are willing to use the solution. This confidence is driven by a widespread acceptance of the use of fingerprints to identify individuals paired with a streamlined user experience.
“PIN and signature are solutions from another past life. FIs and issuers need to consider how to optimize the cardholder verification process for 2017 and beyond. Biometrics will be central to that proposition, bolstered by solutions that reduce friction and empower cardholders,” said Al Pascual, Research Director and Head of Fraud & Security at Javelin.
The report, The Future of Cardholder Verification Methods: Beyond Chip and Signature, exposes the layers of security necessary to meet consumer’s demands for a streamlined experience. It addresses requirements for POS authentication tools and strategies for issuers to boost security at POS without imposing onerous authentication processes on customers.
Related Javelin Research
- 2016 Data Breach Fraud Impact Report
- Future Proofing Card Authorization
- 10th Annual Credit Card Issuer Identity Safety Scorecard
About Javelin Strategy & Research
Javelin Strategy & Research, a Greenwich Associates LLC company, is a research-based consulting firm that advises its clients to make smarter business decisions in a digital financial world. Our analysts offer unbiased, actionable insights and unearth opportunities that help financial institutions, government entities, payment companies, merchants, and other technology providers sustainably increase profits.