More than half of Australians prefer fingerprints, voice or retina scans in place of PINs when authorizing, according to research commissioned by Visa.
The research also indicates that 29% of Australians are ready to use an internet-connected device, like a smart home virtual assistant or connected fridge to make payments on their behalf.
"Australian shoppers are at the forefront of the global evolution of commerce, providing a big opportunity to merchants and financial services providers to similarly lead their international counterparts in innovation,” Visa group country manager for Australia, New Zealand and the South Pacific Stephen Karpin said.
"As the Internet of Things and biometric capabilities become integrated into our everyday experiences, we'll experience a significant shift in how payments are made. In our lifetime, we will see infinitely more choice in how Australians pay, from watches, fridges and mobile phones, to eyes and fingers. And we'll experience personalization that we never thought possible, powered by artificial intelligence.”
Visa estimates over three billion of its cards are circulating globally with about 44 million merchants accepting the Visa card as payment. The card company predicts that with the introduction of connected devices and the continued growth of digital commerce, those numbers will expand 30 billion different ways of paying and 400 million physical and digital acceptance points.
According to Futurist Anders Sorman-Nilsson, ease of use will drive consumers to adopt new patment and commerce experiences. “Connected, AI enabled devices ready to pay will only be pervasive if the experience is easy, seamless and secure,” he added.
Many of the new payment methods currently using smartphones rely on biometrics for authentication. More than half of respondents surveyed by YouGov (56%) said they are comfortable using their thumbprint, voice or retina for payment. According to the research, the appeal of biometrics is that it is more secure (45%) and the need to not have to remember a pin/password (40%) is driving consumer adoption and readiness.
But while consumers are keen to embrace biometric authentication, less than half (39%) of respondents were willing to share their personal information in exchange for convenience in payments.
Karpin attributes this hesitation to prevailing privacy concerns.
First published in Retail Tech Innovation