New rules push the payments industry to get serious about identity
With GDPR and PSD2 implemented earlier this year, identity and privacy have been brought into sharp focus.
As consumers, we are now painfully aware of just how many companies have our data (how many GDPR emails did you get last month?) and how some companies use it (I’m looking at a big social network). For the financial services community, the energy is now on getting better at managing identity and authentication.
The regulation narrative also looks set to drive changes in behavior. For example, one conversation I had at a recent conference dived into the shift we’re likely to see away from cloud-based data.
My contact was saying that GDPR may make consumers think twice about where their information is stored, preferring services that allow them to retain control on their device or on a local cloud. The commonality across all of this will be trust. If consumers trust your brand, they will be far more likely to share their data, use your service and pay with their time.
Again, it all will depend on the situation, the device or application in question and the task the consumer wants to do. Equally important will be the benefit users get in return for providing their data and time: a better and more personalized service, for instance, empowering them to take more control and make better decisions.
It's important to recognize that payment is a means to an end, not the endgame. The focus must be on making it as seamless and convenient as possible. Biometrics can help to achieve this and to unify the experience across multiple channels and devices.
Consumer familiarity with fingerprint and face/iris recognition from their mobile devices is allowing biometrics to rise to the top as a rare security technology that does not limit CX and UX. In a number of areas, it can even enhance both.
And what’s great is many companies are now reaching the deployment phase for their biometric projects. Not only that, but these projects are also a central and fundamental aspect of their strategy.