Biometric In-store Payments to Boost Besieged Retail Market

According to a new study by Juniper Research, there is a forecasted growth of 138% in the number of transactions carried out via biometric-enabled POS terminals, up from 19.5 billion in 2023. In-store biometric payments enable consumers to pay in-store through different biometrics like palm vein, facial & iris recognition, and fingerprints.

This study found that in-store biometrics can enable a better consumer experience, allowing retailers to create a highly differentiated in-store offering. This differentiation is essential for the under-pressure in-store retail sector, which faces stronger competition from eCommerce, along with reduced consumer spending due to the cost-of-living crisis in many markets. The report emphasizes the importance of biometrics in improving the consumer experience in brick-and-mortar retail. Providing a strong in-store experience is vital for success as retailers compete more fiercely for customers.

Commenting on the research, co-author Melissa Amouny said, “The physical nature of bricks-and-mortar stores is one of its only remaining competitive edges; therefore, stores must implement convenient payment methods like biometrics to maximize this. These changes will make retail stores more distinctive destinations for shoppers, boosting their resilience.”

The study found that while biometric payment systems have high initial costs, they can deliver a return on investment in the longer term by further automating checkout processes. While retailers are reluctant to invest at a time of strict budgetary controls, they must prioritize investments in biometric in-store payments now to ensure they do not get left behind by more agile competitors.