# Can banks acquire customers with biometric payment cards?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-19
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: The Business Case for Biometric Payment Cards: Boosting
Meta Description: Discover how banks can enhance security and convenience for consumers, attract new customers and increase revenue with biometric payment cards.
URL: https://financedigest.com/can-banks-acquire-customers-with-biometric-payment-cardshtml

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_By_ **_Michel Roig,_** _Senior Vice President, Head of Busines Line Payments & Access, Fingerprints_

When it comes to banking, consumers are traditionally loyalists and often stay with their banks from early adulthood through to retirement. In fact, [one 2018 study](https://www.forbes.com/sites/ronshevlin/2019/05/01/why-are-fewer-consumers-switching-banks-because-checking-accounts-have-become-paycheck-motels/?sh=51d931752aa9) found that just 4% of U.S. consumers switched primary banks that year.

Yet increasingly, consumers want more from their [bank than just a place to store their money](https://www.financedigest.com/marketmind-banks-are-leaking-money.html "Marketmind: Banks are leaking money"). The era of ‘one bank for life’ is coming to a close, so banks will have to keep improving the [customer experience](https://www.financedigest.com/is-your-customer-experience-exceptional.html "IS YOUR CUSTOMER EXPERIENCE EXCEPTIONAL?") to stay competitive. In an industry where customer retention and acquisition are critical, finding opportunities to offer consumers value-added products and services is key.

One such opportunity is the [biometric payment](https://www.financedigest.com/the-future-of-biometrics-in-payments.html "The Future of Biometrics in Payments") card. With [early adopters of the technology](https://www.nfcw.com/2021/01/26/370345/bnp-paribas-to-offer-biometric-payment-cards-to-premier-card-customers/) already rolling out the cards to their customers and [51% of consumers willing to switch banks to get their hands on the tech](https://www.fingerprints.com/2021/01/18/fingerprints-global-survey-finds-strong-consumer-appetite-for-biometric-payment-cards-with-51-ready-to-switch-bank-for-one/?utm_source=iseepr&utm_medium=Blog&utm_campaign=banking_blog), now is the time for banks to get serious about biometric cards. From [boosting brand image and adding value](https://www.financedigest.com/how-a-garden-can-boost-your-property-value.html "How a garden can boost your property value") for customers to, ultimately, increasing revenue, let’s take a look at the business case for biometric payment cards.

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**Improving the payment experience**

Contactless cards are the most-used payment method in store, [with 77% of consumers using their card weekly or even daily](https://www.fingerprints.com/uploads/2021/01/fingerprints_infographics_consumer_in-store_payment_global.pdf?utm_source=iseepr&utm_medium=Blog&utm_campaign=banking_blog). Consumers praise contactless payments for their user-friendliness and 63% of consumers would like to use the [payment method even more 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").

Despite its popularity, however, some serious pain points remain. Our recent survey found that 51% of consumers worry about the lack of security if their contactless card were to be lost or stolen. This worry has increased from 38% in 2018 – a clear sign that security is a primary concern for consumers. Beyond security, the limitations on contactless transactions are also a point of frustration for many. 1 in 4 are [confused about the maximum amount they can spend without entering their PIN](https://www.financedigest.com/chip-and-pin-in-the-us-why-all-the-confusion.html "Chip and PIN in the US – why all the confusion?") at PoS terminals, and that you sometimes need to enter the PIN despite being under the cap, and an equal amount consider the payment cap too low for their usual in-store payments.

Banks that introduce biometric [payment cards can enable their customers](https://www.financedigest.com/2019-year-customers-take-control-payments.html "2019: The year customers take control of payments") to tap and pay for any amount, every time, while at the same time improving the security.

Moreover, biometric payment cards are a [way](https://www.financedigest.com/5-ways-banks-can-compete-in-payments.html "5 ways banks can compete in payments") to harmonize the payment experience. Consumers are already used to unlocking their smartphone with a fingerprint sensor. With mobile [payments and banking](https://www.financedigest.com/crown-agents-bank-owner-explores-sale-of-british-payments-group-sources.html "Crown Agents Bank owner explores sale of British payments group –sources") apps on the rise, biometric authentication is now increasingly common in consumer finance.  By offering biometric technology in payments cards, banks can offer their [customers the same convenience and security they are used to from their mobile](https://www.financedigest.com/communicating-with-the-customer-is-the-future-of-mobile-banking.html "Communicating with the customer is the future of mobile banking") banking.

**Boosting brand image**

Aesthetic and innovative design is increasingly a key consideration, particularly among affluent, executive, and millennial consumers. It is no surprise, then, that over 60% of these demographics would switch banks to receive a biometric payment card. But also, a large proportion of the more mainstream segments would [consider switching banks](https://www.financedigest.com/5-things-to-consider-when-choosing-a-challenger-bank.html "5 Things to Consider When Choosing a Challenger Bank") to get this card, which shows the excitement of this technology across different consumer demographics, both for functional and emotional reasons.

What exactly are consumers looking for in their payment card, then? [Our 2020 research](https://www.fingerprints.com/2020/12/02/the-art-of-biometric-payment-cards-why-banks-need-to-get-design-savvy/?utm_source=iseepr&utm_medium=Blog&utm_campaign=banking_blog) found that ‘modern’ and ‘personalized’ cards are the highest-rated design traits for consumers. Most importantly, they want a card they feel they can show off and that is intuitive to use.

This is where biometric payments cards can help [banks boost](https://www.financedigest.com/britain-seeks-to-boost-banking-services-from-fintechs.html "Britain seeks to boost banking services from fintechs") their brand image. Beyond the security and convenience that biometric cards offer, the technology brings a sense of futuristic innovation to consumers’ favorite [payment method](https://www.financedigest.com/freelancer-payments-methods-what-you-should-know.html "Freelancer Payments Methods: What You Should Know"). By offering consumers this latest technological advancement banks can stay ahead of the curve, thereby increasing [customers’ loyalty](https://www.financedigest.com/how-do-you-build-customer-loyalty-3-steps-to-follow.html "HOW DO YOU BUILD CUSTOMER LOYALTY? 3 STEPS TO FOLLOW") and, crucially, attracting new customers.

**Increasing revenue**

Attracting new [customers is of course a good way](https://www.financedigest.com/5-ways-a-ccm-platform-can-help-improve-customer-engagement-in-insurance.html "5 Ways a CCM platform can help improve customer engagement in insurance") to increase revenue, particularly considering 43% of consumers are willing to pay extra for a biometric payment card. [56% of banks](https://www.fingerprints.com/2019/10/07/are-biometrics-pointing-to-opportunities-for-banks/?utm_source=iseepr&utm_medium=Blog&utm_campaign=banking_blog) have also said they would bundle this technology with other value-added services, creating the competitive offerings that consumers are looking for these days.

Creating these value-added [services is not only important for driving revenue from customer](https://www.financedigest.com/revolutionising-customer-service-three-sectors-that-are-leading-the-way.html "Revolutionising Customer Service: Three sectors that are leading the way…") acquisitions, but also for reducing the cost of losing customers. [To regain a lost customer takes 5 times to cost of keeping one](https://www.fiworks.com/resources/statistics), and with consumers increasingly ‘shopping around for banks’, retaining them with up-to-date and value-adding services is crucial.

Besides supporting customer acquisition and retention, biometric technology itself can also increase revenue by [reducing fraud](https://www.financedigest.com/how-can-you-reduce-the-risk-of-fraud-in-b2b-payments.html "How can you reduce the risk of fraud in B2B payments?") and increasing transaction volumes. Not to mention the savings from reduced ‘lost PIN [management’ internally](https://www.financedigest.com/managing-trade-credit-and-insurance-in-the-context-of-international-commerce-expansion.html "Managing trade credit and insurance in the context of international commerce expansion ")!

**Timing is everything**

Biometrics is growing across payment methods. The technology is [certified by major payment network](https://www.fingerprints.com/2020/03/12/testing-testingmilestones-on-biometric-payment-cards-path-to-mass-market/?utm_source=iseepr&utm_medium=Blog&utm_campaign=banking_blog) s and already has received [recognition from industry bodies, such as EMVCo](https://www.fingerprints.com/2021/01/12/fingerprint-cards-abs-slim-mobile-sensor-first-to-achieve-emvco-approval-for-secure-mobile-payments-2101120800/?utm_source=iseepr&utm_medium=Blog&utm_campaign=banking_blog). Consumers are used to the [technology from unlocking their banking apps and verifying mobile payments](https://www.financedigest.com/from-the-experts-5-payment-technology-trends-to-look-out-for-in-2016.html "FROM THE EXPERTS: 5 PAYMENT TECHNOLOGY TRENDS TO LOOK OUT FOR IN 2016"), but mobile payments won’t work for every situation or demographic. Only 2% of consumers use their mobile for everyday in-store payments and in fact, 74% of active mobile payment users are also [interested](https://www.financedigest.com/delivery-hero-ramps-up-interest-payments-to-raise-1-billion-euro-convertible-bond.html "Delivery Hero ramps up interest payments to raise 1 billion euro convertible bond") in having a biometric payment card. Card and mobile go hand-in-hand and work in harmony across online and physical payments, different situations and locations.

With biometric card trials moving to commercial roll-out this year, it won’t be long before this new tech is a consumer expectation. Timing is everything in business, and for banks looking to [stay ahead](https://www.financedigest.com/staying-ahead-of-risk-this-black-friday.html "Staying Ahead of Risk This Black Friday"), now is the perfect time to level up their payment card and offer their customers the convenience and security of biometric payments.


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