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OPINION
The biometric EMV card: the next trend in banking technology Xavier Larduinat discusses how the end of PIN and password is nigh
Head of Banking and Payment Innovation, Gemalto Xavier Larduinat
T
he uptake of contactless cards worldwide is a great demonstration of consumers’ demand for convenience. However, currently contactless payments are restricted to a
certain level of transaction. If you want to pay for something slightly more expensive, you still need to use your PIN. But what if there was a card that you could pay with for transactions of any value, without having to use a PIN at all?
Introducing the biometric EMV card
The development of EMV cards with embedded fingerprint authentication carries the promise of becoming a trend in banking technology in the next few years. These cards are a step forward in payments not just for their convenience, but also for their extremely high levels of security. Biometrics being used in the development of bank cards is a direct result of the mainstream adoption of biometrics on smartphones; we’ve become accustomed to using our fingerprint as a means of identification. This means it’s only a small jump to begin using them for payment authentication as well.
This new breed of payment card brings with it a new type of authentication – the “What I Am” authentication factor. For example, when using an EMV banking card, the use of the PIN code authenticates, but does not identify the cardholder – since the 4-digit PIN may have also been shared by the genuine user with other people. In contrast, “What I Am” uses factors like biometrics in order to determine the user’s true identity. This provides greater security as there is no easy way you can share your biometric characteristics with someone else; they are unique to the individual.
The Bank of Cyprus is the first to take advantage by announcing in January 2018 that it plans to issue a biometric contactless EMV card. Cardholders will be able to use their fingerprint instead of a PIN code to authenticate themselves when using the card, which is compatible with all existing payment terminals already available in the country. Customers just need to complete a swift enrolment process at the bank’s branches. It will be possible in the future to enroll the fingerprint directly and securely in the card at home as well.
Usability and security
The development is not without challenges. It’s imperative that consumers have the same, if not a better, experience as when using a contactless card, and they need to be as durable as a normal bank card. This means that a biometric card needs to have a lifespan of three to five years, and needs to continue working throughout that period. Otherwise, consumers would need to constantly request new ones. To address this, the card has been developed to be powered by the payment terminal and not require an embedded battery. This means there is no limit from battery life nor on the number of transactions.
Privacy and security must also be absolutely watertight, since any breach would be critical in terms of mainstream adoption. It is imperative that all customer data is stored securely, and that banks are thinking about how to obtain, register and store fingerprint information. To address these concerns and ensure users’ data privacy is protected, the biometric personalisation and card activation process has been designed to avoid transmission of biometric data over the air. The fingerprint template captured during the enrolment process is stored only on the card.
Looking to the future
The combination of biometrics and contactless could bring the ultimate payment experience to stores, for consumers and retailers. Biometrics for the EMV card brings the final touch that is needed to migrate the entire card experience to contactless, regardless of the payment amount. We’re likely to see biometric authenticated cards piloted and deployed more widely in the next couple of years, and then followed by cards being converted to biometrics in large volumes thereafter.
Beyond that, fingerprint technology in payments could just be the tip of the iceberg when it comes to biometric authentication. One day we may live in a truly zero interface world, in which characteristics such as our fingerprint, voice, face and even behaviour contribute to an authentication matrix which makes for a completely seamless and highly secure experience in all walks of life.
www.ibsintelligence.com | © IBS Intelligence 2018
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