# 2022 – The year that facial recognition will lead the fintech industry Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-06 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Facial Recognition: The Future of Payments in 2022 Meta Description: Discover how facial recognition technology is transforming the FinTech industry with increased security, convenience, and adaptability in the payment process. URL: https://financedigest.com/2022-the-year-that-facial-recognition-will-lead-the-fintech-industryhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-875518498-1736815993291-compressed.jpg) _By_ **_Anton Nazarkin,_** _Global Business Development Director of VisionLabs_ The year 2022 has many innovations and advancements in technology coming our way, with the Metaverse already capturing our imagination. However, what does this year have in store for the FinTech industry and what is going to change it the most? In 2020, contactless transactions hit its [highest rate since 2015](https://www.bis.org/statistics/payment_stats/commentary2112.pdf). Since then, the pandemic has demonstrated both the necessity, and desire from consumers, for truly [contactless methods of payment](https://www.financedigest.com/the-future-of-contactless-payments.html "The future of contactless payments"). It is clear that facial recognition, as a transaction method, will continue to [grow throughout 2022 and beyond](https://www.financedigest.com/the-drug-repurposing-market-to-virtually-grow-beyond-geographies.html "The Drug Repurposing Market to virtually grow beyond geographies"). But what does this growth actually look like? **_Facial recognition will have a global impact on the_** [future of payments](https://www.financedigest.com/the-future-of-biometrics-in-payments.html "The Future of Biometrics in Payments") 2022 we will see [increases in the transaction limits for facial recognition payments](https://www.financedigest.com/payment-community-engagement-in-the-development-of-the-emv-specifications-increases.html "Payment Community Engagement in the Development of the EMV Specifications Increases") through smartphones and other devices, whilst some vendors will use facial recognition terminals for any-and-all payments. Physical credit, debit and prepaid cards are already being replaced by the new methods of handling transactions at a rapid rate, through the means of [mobile payments](https://www.financedigest.com/what-is-the-optimum-mobile-payment-mix.html "What is the optimum mobile payment mix?") and digital wallet services. In late 2021, Apple [increased the limit on contactless transactions demonstrating consumers desire to adopt](https://www.financedigest.com/bicycle-market-growth-to-surge-owing-to-increasing-adoption-by-end-use-applications.html "Bicycle Market Growth to Surge Owing to Increasing Adoption by End-use Applications") contactless methods. In most cases, the card number or the identity of the cardholder aren’t shared with the merchant during contactless payments, meaning if integrated with face biometrics the need for a transaction amount limit could be removed. The introduction of facial recognition terminals is the [next generation of this truly contactless payments](https://www.financedigest.com/the-next-frontier-of-payments.html "The next frontier of payments") experience. Through removing the need for smartphones to store, or process the biometric data, and installing facial recognition terminals at point of purchase, a seamless [customer experience](https://www.financedigest.com/how-partnerships-fuel-fintech-innovation-and-help-banks-deliver-a-better-customer-experience.html "How Partnerships Fuel Fintech Innovation and Help Banks Deliver a Better Customer Experience") can be achieved. No longer does a phone need to be tapped against an NFC reader for a transaction to occur. As the most secure method for confirming a person’s identity during the payment process, face biometrics will greatly [reduce the possibility of card and payment fraud](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD"). This not only has the benefit of protecting the customer, but can also help governments and businesses fight [money laundering and other fraud issues](https://www.financedigest.com/more-than-one-in-ten-brits-are-embarrassed-to-talk-to-anyone-about-their-money-issues.html "More than one in ten Brits are embarrassed to talk to anyone about their money issues"). These vast improvements in security, provided by face recognition technology, will only continue to [increase the adoption rate](https://www.financedigest.com/how-to-increase-repeat-purchase-rates-in-ecommerce.html "How to increase repeat purchase rates in eCommerce") of facial recognition in the payments process. Facial recognition [technology will continue](https://www.financedigest.com/how-video-technology-continues-to-boom-in-the-education-sector.html "How video technology continues to boom in the education sector") to improve and evolve. VisionLabs software can already recognize facial biometric data when an individual is wearing a mask, due to the precise levels of accuracy and one-shot [liveness check – whereas many other ‘standard’ technologies](https://www.financedigest.com/how-technology-has-changed-our-lives.html "How Technology has Changed Our Lives") still struggle to achieve this. The pandemic will mean many individuals will continue to wear a mask in crowded and public places, so evolving facial recognition technology to this high-level of accuracy will be a key trend in 2022 and beyond, with VisionLabs [leading the way](https://www.financedigest.com/customer-engagement-whos-leading-the-way.html "Customer engagement – who’s leading the way?"). **_Why facial recognition will overtake traditional [payments in the future](https://www.financedigest.com/why-blockchain-could-represent-the-future-of-cross-border-payments.html "Why blockchain could represent the future of cross-border payments") and when!_** Facial recognition [payments account for 40% of the total number of transactions in 2 years](https://www.financedigest.com/2019-year-customers-take-control-payments.html "2019: The year customers take control of payments"), in VisionLabs’ implemented projects. The convenience and high level of usability contribute to this level of adoption, moreover the seamless and contactless experience that facial recognition payment methods provide increase adoption as consumers are always looking for a smoother, safer and speedier [way to purchase – fitting into their increasingly busy](https://www.financedigest.com/6-ways-how-to-create-great-tiktok-videos-for-your-business.html "6 Ways How to Create Great TikTok Videos For Your Business") lives. For businesses and banks, the implementation of facial recognition can [prevent chargeback fraud](https://www.financedigest.com/payroll-fraud-and-how-to-prevent-it.html "Payroll fraud and how to prevent it"). When a purchase is made, and the similarity score identifies the purchaser is who they say they are, the [face image is saved](https://www.financedigest.com/under-saved-and-underprepared-women-face-challenges-saving-for-retirement.html "UNDER-SAVED AND UNDERPREPARED: WOMEN FACE CHALLENGES SAVING FOR RETIREMENT") alongside the transaction. If a dispute from the consumer is then initiated, [banks and businesses will have the evidence that the consumer was indeed the person making the transaction](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS"). Chargeback [fraud can also occur when the fraudster has a friend or family member make the purchase with their card](https://www.financedigest.com/uk-card-fraud-losses-climbed-18-percent-in-2015-largest-rise-in-europe.html "UK CARD FRAUD LOSSES CLIMBED 18 PERCENT IN 2015, LARGEST RISE IN EUROPE"), then claim the money back. Within your card, or bank, contract you will also not be allowed to share your [debit or credit card](https://www.financedigest.com/visa-has-terminated-global-debit-card-agreements-with-ftx.html "Visa has terminated global debit card agreements with FTX") with another individual however no businesses check ID when making transactions. Introducing facial recognition into the transaction process can therefore greatly reduce the impact of fraud, providing yet another reason why facial recognition will overtake traditional payments. **_Who is leading the charge?_** Today the countries who lead in the number of citizens adopting facial recognition payments are China and Russia; while trials of this [technology are ongoing in many other countries of the world](https://www.financedigest.com/is-wearable-technology-ushering-in-a-brave-new-healthy-world.html "Is wearable technology ushering in a brave new healthy world?"). The reason for this is the long adopted and working [regulation on biometric data](https://www.financedigest.com/aon-introduces-new-cyber-solution-in-response-to-eu-regulation-on-data-protection.html "Aon introduces new cyber solution in response to EU regulation on data protection"), including its collection, management and storage. Whereas many other countries are yet to adopt or even develop balanced biometric data regulations, which greatly slows down the [adoption of facial recognition technology](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry"). The difference between these two leaders is that [China began introducing facial biometric data](https://www.financedigest.com/stocks-sag-as-hawkish-fed-cools-china-rally-awaits-us-jobs-data.html "Stocks sag as hawkish Fed cools China rally; awaits US jobs data") as a second factor for identity verification much earlier. However, [Russia has moved to a pure face](https://www.financedigest.com/gold-investors-face-bind-over-bars-from-tarnished-russia.html "Gold investors face bind over bars from tarnished Russia") payment experience, although transaction limits are still being imposed. The key advancement in 2022 will be that regulations will become more widely adopted. Moreover, whilst countries around the globe have individual laws and restrictions on facial recognition, a global, or at least market wide, regulation is likely to be put in place during the course of the [next year](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year") – setting the world up for a boom in facial recognition towards the end of 2022 and into 2023. **_2022 – The year for facial recognition_** In 2022, the FinTech [industry will continue to adopt](https://www.financedigest.com/matching-digital-adoption-with-cybersecurity-in-the-financial-services-industry.html "Matching digital adoption with cybersecurity in the financial services industry") facial recognition at a faster rate for a multitude of reasons; the customer experience, and benefits to business are too hard to ignore, whilst issues with regulations and laws is expected to be overcome allowing for widespread expansion of facial recognition into retailers, banks and vendors of all kinds. --- This blog is powered by Superblog. 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