According to the research group, one driver in the market is increase in the digitization of banking services. The increased use of smartphones and tablets has led to a digital reformation in the banking sector. The BFSI sector is one of the prominent users of portable devices (for digital payments and cashless financial transactions). With the growing transaction volumes and the introduction of new digital payment solutions, the banking sector is challenged with the need to keep the magnitude of fraudulent activities low, without compromising on the convenience of the customers, according to Research and Markets.
One trend in the market is NFC-based payments. Near-field communication (NFC) works if two devices are placed within a few centimeters to exchange data. It requires both devices to be equipped with an NFC chip. Apple is partnering with various financial institutions to introduce NFC-powered mobile payments. Before Apple launched NFC mobile payments, this technology had been adopted by many Android- and Microsoft Windows-based smartphones.
Further, Research and Markets states that one challenge in the market is high cost of the mobile biometric technology. The high cost of mobile biometric solutions is the major challenge faced by the global mobile biometrics market. Though the biometric readers and scanners in mobile devices offer numerous advantages over their counterparts, their TCO, which includes the implementation and maintenance costs of biometrics systems, is high. The adoption of biometric technologies in mobile devices is often accompanied by the costs associated with the implementation of application software, system integration, and middleware.
