A new study by Juniper Research, experts in fintech market analysis, forecasts a whopping surge in the number of transactions executed via biometric-enabled Point of Sale (POS) terminals. Data reveals an expected growth rate of 138%, elevating the transaction number from 19.5 billion in 2023 to an impressive 46 billion by 2028.
Biometric in-store payments ensure that consumers can settle their in-store payments through various biometric validations. These include but are not limited to, facial and iris recognition, fingerprints, and palm veins. Juniper Research's exhaustive report underscores the ability of in-store biometrics to bolster a superior consumer experience, hence offering a distinct in-store service. This unique differentiation is instrumental for a retail sector under pressure, competing courageously with eCommerce while grappling with reduced consumer spending prompted by the prevailing cost-of-living crisis in several markets.
The report highlights the crucial role of biometrics in enhancing the consumer experience in traditional brick-and-mortar retail settings. Forging a power-packed in-store experience is imperative for success in the race to woo customers.
Melissa Amouny, a co-author of the research, suggests that the physical presence of brick-and-mortar stores is a crucial competitive advantage. To leverage this, stores should adopt convenient payment methods such as biometrics. Implementing these changes can enhance the uniqueness of retail stores, making them more appealing destinations for shoppers.
Melissa Amouny opines, "The physical nature of bricks-and-mortar stores is one of its only remaining competitive edges. Therefore, stores must implement convenient payment methods like biometrics to maximise this. These changes will make retail stores more distinctive destinations for shoppers, thereby boosting their resilience."
Conversely, the study reveals that while biometric payment systems offer excellent return on investment in the long run by seamlessly automating checkout processes, they bear high initial costs. This often serves as a stumbling block for retailers who are hesitant to invest amid stringent budgetary restraints. However, the emphasis rests on prioritising investments in biometric in-store payments to remain competitive and not lag behind their more agile competitors.
In a nutshell, the research throws light on the urgent requirement for companies to invest in biometric in-store payments to remain afloat amid intense competition. The future of retail could very well rest on the swift adoption of biometric technology. It has the potential not only to drastically transform the consumer in-store experience but to underpin the resurgence of physical retail stores as well.
The comprehensive market research suite offers an intricate analysis of the biometric in-store payments market. It provides forecasts of over 9,500 data points across 60 markets spanning five years. The suite includes a Competitor Leaderboard and an examination of future market opportunities, proffering vital insights into this increasingly important sector.
For the past two decades, Juniper Research has been at the forefront of delivering market intelligence and advisory services to the global financial sector. Renowned for its expertise, Juniper Research is the trusted partner of numerous leading banks, intermediaries, and providers worldwide.