Payment authentication is crucial in preventing fraud. Chip cards, touch ID, and face ID are results of an evolving authentication technology. The quest for more security in payments produces safer and faster authentication.

Biometric authentication uses a person’s physical features to verify identity. When you raise your iPhone to your face and unlock your phone, you’re using biometric authentication. When you scan your finger at your local 24 hour fitness, you’re using the same technology.

Voice, fingerprints, iris, face, and hand identification are the main methods of biometric authentication. Payment security is shifting from pin codes and chip cards to process transactions. However, is biometric authentication more secure than using “chip and pin”?

What is Biometric Authentication?

Biometric authentication is when an individual’s physical features are used for identification. Methods such as fingerprint and facial recognition were limited to law enforcement. However, recent developments have made biometrics a common technology.

Apple has ingrained voice, fingerprint, and face ID in their devices. Biometric recognition has the ability to unlock phones and computers. Mainstream use of Touch ID and Face ID also popularized biometric payments.

How do Biometric Payments Work?

Biometric payments compares inputted data to stored data. A match will allow payment authentication. The device or card saves the owner’s biometric information. The technology looks for nearly identical features to give access.

Biometric data are commonly stored in personal cards, devices, and POS systems.

• Biometric Payment Cards store a cardholder’s fingerprint ID. The biometric data is not stored anywhere else in order for the card to work. The on-card biometric censor confirms identification when the owner uses it on a compatible POS.

• Mobile Device Wallets store card and bank data for owners to actively use. Devices such as iPhones have either Touch ID or Face ID for general security. Users can use the same authentication to pay at a POS or online.

• Mobile POS uses facial recognition payment (FRP) technology on store-owned devices. A cardholder’s facial data is uploaded using a corresponding app. Then, the user can pay through a POS’s facial recognition censor. PayByFace is an example of mobile biometric payment technology.

How Secure is Biometric Authentication?

Biometric authentication is more secure than pin codes and passwords.

Codes can be compromised or bypassed by crafty fraudsters. Biometric authentication use unique data. This information, such as fingerprints, are encrypted. The encrypted data cannot be used or seen by hackers who manage to get into biometric databases.

There are a few ways biometric data is stored.

• Portable Hardware Tokens are what biometric payment cards use.

• On-Device stores biometric data solely on devices and not online.

• Biometric Database Servers include cloud-based servers that can be accessed across different devices. This is the least secure way data is stored.

Biometric Payments More Secure than Chip and Pin

The main difference between biometric authorization and other methods is encryption of data. This security significantly cuts the chance of fraud.

Some biometric payment methods may still use pins and passwords for further authentication.