New revenue potential
There is an additional upside. While removing contactless limits opens up the potential for an increase in spending, banks could also charge their customers for using the service. When asked how much they would be willing to pay for contactless payments with no upper spend limit, over 87% of survey respondents said they would be prepared to pay a monthly fee. The majority, 42%, said they would pay between £2 and £5 per month.
The survey, carried out by Goode Intelligence in partnership with global technology leader G+D, shone a light on what consumers in the UK think about biometric cards. The results were positive, with 88% of respondents confirming they wanted their banks to upgrade their contactless payment cards to support biometrics.
These wishes could soon become reality, as there is a growing list of banks that have trialed the technology. G+D teamed up with global semiconductor company NXP and security and identification specialists Linxens to pilot biometric cards at French bank Crédit Agricole. An impressive 83% of customers who took part said they found biometric authentication simpler than a PIN, and 91% found it to be more secure. For payments above €30, the limit of a regular contactless card without the usage of a PIN, customers increased their use of biometric authentication from 15% of the time at the start of the trial to 44% by the end. Crédit Agricole hopes to start a commercial rollout in 2021.
As consumers start to adjust to a post-pandemic world, the arrival of biometric payment cards looks timely. A combination of contactless technology, greater privacy and security, and the simplicity of a fingerprint could be a win-win for banks and their customers.