Future of Secure Payments: American Express’s Biometric Integration and Facia’s RoleAuthor: Luke Oliver | 12 Oct 2023
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In the world of increasing online transactions, securing user information is paramount. American Express has recently integrated biometric authentication measures to increase overall security. They have collaborated with industry leaders such as the FIDO Alliance and W3C signalling a significant shift towards a secure and convenient online checkout experience.
American Express has recently incorporated facial and fingerprint recognition within its SafeKey technology. These advanced biometric features, currently in a pilot program, are set to revolutionize the checkout process.
The aim is to combine user-friendly convenience with enhanced security, making online transactions as straightforward as unlocking a mobile device. This leap significantly impacts consumer protection against the evolving challenges of online fraud.
The Shift towards Biometric Solutions
According to Goode Intelligence research, global biometric payments are expected to reach $5.765 trillion annually by 2026.
This highlights the importance of automating transactions and how the world is concerned about customer safety. Financial services hold significant sensitive information of customers and other businesses, hence it becomes imperative for them to have robust security solutions at their disposal.
Learning from the Past
Financial Fraud in E-commerce Due to Poor Security
- $4.79 out of every $100 in e-commerce sales faces the risk of financial fraud.
- Global e-commerce fraud losses in 2022: $41 billion, projected to exceed $48 billion in 2023.
- North America accounts for over 42% of global e-commerce fraud.
- Latin America experiences a 20% revenue loss to fraud, with 3.7% of orders being fraudulent.
It would be too early to assume that incorporating liveness detection and other advanced biometric measures would completely reverse these numbers, but there is enough evidence to suggest that they will increase security significantly. American Express has realised the importance of biometrics and hence moved towards expanding their partnership to further secure transactions.
To conclude, organisations are nowadays required to focus on robust security measures. We believe that this partnership is only the tip of the iceberg, and more organisations from financial services will incorporate liveness detection and face recognition as part of their user onboarding process.