The Benefits of Biometric Payment in the Travel Industry

After experiencing tremendous success in the mobile phone market, biometric payment technology is slowly infiltrating other industries as well. It creates a perfect opportunity for every industry to create a fail-safe system to protect their important information and the integrity of their business. Recently, it has also created possibilities for huge improvements in the travel Industry.

Clients prefer biometric recognition systems over the traditional PIN system as it guarantees a higher level of security and is more convenient to use. The main reason for that can be people often end up forgetting their PIN number or password, however, it is impossible to lose your fingerprint. Another reason is security, whether you shared it with someone or they figured it out, they can use your pin number or passcode to access your devices or accounts with ease.

This is where the use of biometric technology can help remedy the current drawbacks faced by the prevalent methods of verification. As consumers are always looking for things that can make their lives easier and more convenient. According to a study conducted by Visa, “86% of shoppers are fascinated by using biometrics to verify the identity or to form payments”. Studies like this compelled the banks to explore further the world of biometric technology.

Thanks to the use of digital wallets, countless biometric innovations are being utilized in the travel sector to replace and improve upon the older forms of payment methods. This resulted in the seamless transaction of monetary resources between two parties, the client and the agency or the agency and the vendors. By seamless, we mean, no important data or information of either of the parties were breached or abused in the transactional process.

Now before we venture into the benefits of Biometric Payment, let us first understand the concept of biometric payment and how it functions.

Biometric Payment

A point-of-sale (POS) technology that uses Biometric Authentication based on physical attributes like iris, retina, facial features, DNA, signature, voice, or even vein patterns, to identify a user and grant access into a bank account so that transaction of funds from that account can be authorised, is known as Biometric payment. The most common biometric payment method which is prevalent these days is based on finger scanning.

Often two-factor authentication is used by some systems which vary from bank to bank. Sometimes bank apps use facial recognition to access the account and any transaction is processed by sending an OTP number to the registered phone number of the user. Another one is the use of a finger scan instead of the card swipe and then the user types in a personal ID number (PIN) as usual.

This technological innovation has proven to be pathbreaking in many ways. It creates a faster, easier, and more secure channel for the transaction of users’ funds. It diminishes the necessity of carrying cash, checks, or credit cards along with you all the time, which also lowers the risk of losing or misplacing them.

How does Biometric Payment Function in the Travel Industry?

To understand how the process of Biometric Payment works in the travel industry, let’s consider the prime example of the technology, the fingerprint payment system:

• First, the consumer needs to enter valid identification and bank account information on a biometric payment card program at a store kiosk. 
• After which the consumer will have to place their index or whichever finger they want on the finger scan reader to be scanned.
• Then biometric data and banking information of the consumer gets stored in the centralized database as the finger scan reader marks and measures multiple point-to-point distances of the fingerprint, then encrypts it. 
• Now the consumer can choose biometric payment at the POS register as the method of payment, scan their finger on the electronic reader at the checkout counter of the store and enter their PIN code.
• This fingerprint is then scanned and compared to the encrypted data which was stored in the centralised database prior. After which the machine can either approve or decline the authentication for the payment transaction. When the authentication is approved the transaction occurs electronically from one account to the other.

Now that we have a better and clearer idea of what Biometric payment is and how it works, it is time to check out the numerous benefits experienced from the infiltration of Biometric Technology, specifically Biometric Payment in the travel industry.

Stronger Security

This has to be among the top reasons for opting for this technology for payment. Many consumers have reportedly claimed the standard four-digit PIN system to be a security liability, preferring biometric fingerprint or facial recognition technology over it. Biometric Fingerprint and retina scanning technology are considered to be the most secure form among the rest, as fingerprints and irises vary from person to person. Furthermore, an industrial biometric algorithm can produce over 99.99 percent authentication accuracy, making this the most secure way to transact funds for the card or account holder. 

Easy Set-up and Use

There are many banks that are now using mobile apps for account-account fund transfers, online bill payments, and keeping track of people’s account balances. You can easily register in these apps and make payments to book your flights and other reservations from the comforts of your own home. And all you have to do is place your finger on the built-in fingerprint sensor of your phone or centre your face in front of the camera for facial recognition. Another way is for the cardholder to enter valid identification and bank account information on a biometric payment card program at a store kiosk, place their index or whichever finger they want on the finger scan reader to be scanned and the biometric data and banking information of the cardholder gets stored in the centralized database. This data will be used during checkout when you place your finger on the fingerprint scanner.

More Environmentally Friendly

Opting for biometric payment is an environmentally friendly move for any facility that stands to profit from the travel industry. First of all, since biometric technology enables the online transfer of funds, you won’t need to carry cash everywhere with you slowing down the necessity to produce paper cash. Thus, proving its eco-friendly nature. Additionally, the biometric sensors are self-charging by design. So, the need for embedded batteries or recharging capabilities for the sensor or the card becomes obsolete lowering its energy consumption.

Contactless and Wireless Purchases

Biometric Payment has proven to be very beneficial in the retail market for promoting contactless payment, so, there is no doubt that it will reap the same benefits in the travel and tourism industry as well. With the addition of security and convenience, contactless transactions of funds played a pivotal part during the pandemic to restart the world economy. Especially since due to fear of contracting COVID, the travel sector almost came to a standstill. And now thanks to this system, you can make large payments from anywhere in the world. However, the introduction of the Biometric payment system changed that for the best for the bank, the business, and obviously the consumer.

In conclusion, the biometric payment system has made almost every vital process in the travel and tourism industry more convenient, faster, and extremely secure, to a point where it greatly benefits the consumers as well as all the parties working for this sector. By revolutionising the payment method, it opened the doors to several other lucrative opportunities.