Incode’s “Consumer Pulse on Biometrics” Report | Incode
Incode’s “Consumer Pulse on Biometrics” Report
Date: May 10, 2023
Study uncovers need for digital, privacy-centric identity verification and authentication solutions to improve the customer experience and create user trust
Executive Summary
Incode, a pioneer in biometrics technology and a leading business provider of digital identity and authentication solutions, gauged user sentiment toward digital authentication and the use of consumer-facing digital identity apps and services. Incode’s research took the pulse of consumers across the globe, exploring popular conceptions about biometrics, how people engage with digital authentication, and barriers to adoption.
Incode surveyed 1000 consumers ages 25+ in English-speaking countries (across North America, the UK, and Asia Pacific) about the perceived benefits and concerns with digital authentication applications and services including biometrics.
This non-weighted inaugural survey kicks off a year-over-year tracking study, “Consumer Pulse on Biometrics” to get insights on opinions, attitudes, and preferences with digital authentication technologies.
Overall, the findings reveal that while consumers can identify specific benefits of using digital identity verification for payments, self-check-ins, venue entry, and account onboarding, they are not fully committed. The majority of those surveyed (57%) said they are apt to re-engage with brands and companies that offer these digital authentication methods for identification. But when it comes to using their apps and services, there is still a high degree of hesitancy to embrace digital identification and those concerns are based on fraud protections, privacy and security. Consumers expressed distrust that companies will actually protect their individual privacy when using biometrics.
Even as many companies announce plans to shift their consumer-facing apps and services to “passwordless”, consumer adoption of biometrics has not rounded the curve. This underscores the need for solutions that put user privacy first.
Key Research Findings
THE CUSTOMER EXPERIENCE
Online Payments
Does Digital Authentication Improve the Customer Experience for Online Payments?
To what extent do you agree that using digital authentication methods (such as biometrics) to pay for things online increases your customer experience?
- Consumers’ opinion is trending toward Agreement that the customer experience is indeed improving through digital authentication.
- On average, over 20% of all respondents Strongly Agree that digital authentication methods such as biometrics increases the customer experience when it comes to online transactions and payments.
- On average, more than one-quarter (34%) of all respondents Agree that digital authentication methods such as biometrics increases the customer experience when it comes to online transactions and payments.
- On average less than a quarter (20%) of all respondents Disagree that digital authentication methods such as biometrics increase the customer experience when it comes to online transactions and payments.
- Slightly over one-quarter (26%) of all respondents Strongly Disagree that digital authentication methods such as biometrics increase the customer experience when it comes to online transactions and payments.
Given these percentages, customer experience is improving with biometrics for online payments, with 54% of respondents agreeing or strongly agreeing that digital authentication improves the customer experience for online payments.
Fraud Protection
Does Digital Authentication Protect You from Online Payments Fraud?
To what extent do you agree that using digital authentication methods to pay for things online better protects you from online fraud than passwords?
- 24% Strongly Agree
- 38% of consumers Agree that using digital authentication methods to pay for things online better protects from online fraud than passwords
- 20% Disagree
- 18% Strongly Disagree
While the majority of respondents (62% combined agree or strongly agree) that using digital authentication methods to pay for things online better protects from online fraud than passwords, 38% are still not convinced.
Simplified Logging In
Does Digital Authentication Simplify Log In?
To what extent do you agree that using digital authentication methods to simplify the logging in and onboarding process improves your customer experience?
- 22% Strongly Agree
- 36% of consumers Agree that digital authentication methods simplify the logging in and onboarding process.
- 21% Disagree
- 20% Strongly Disagree
With a combined 58% of respondents either agreeing or strongly agreeing, consumer experiences improve when using digital authentication for logging in and onboarding.
BENEFITS OF BIOMETRICS
Main Benefits of Biometrics
In your opinion, what are the main benefits of using digital authentication methods, such as biometrics?
- I don’t have to remember a password (47%)
- It offers a more seamless user experience (21%)
- It is faster than passwords (30%)
- It better protects me from online fraud (21%)
- It increases my online privacy (10%)
- Simplifies log-in and onboarding processes (24%)
Almost half of the respondents (47%) indicate that “not having to remember a password” was the top benefit of using digital authentication/biometrics.
DRIVING CONSUMER ADOPTION
Key Industries for Biometrics
Across which of the following use cases would you like to see digital authentication methods used more?
- Finance (35%)
- Retail & eCommerce (34%)
- Hospitality (31%)
- Travel (30%)
- Sports (21%)
- Gaming (16%)
IMPEDIMENTS TO ADOPTION
What’s Holding Consumers Back from Using Biometrics
What are your main concerns about using digital authentication methods, such as biometrics?
- Privacy Compromise (38%)
- Greater Risk of Fraud (25%)
- Too long to set-up (30%)
- User experience not improved (25%)
TRUST & PRIVACY
Trusting Biometrics in the online world
To what extent do you agree with the following statement: “digital authentication helps to create trust in the online world.”
Not surprisingly, three quarters (74%) of survey respondents would be unlikely to use a service with a poor reputation regarding protecting users’ privacy.
- Just over half (52%) of the respondents view digital authentication as helping to engender more trust in the online world.
ANALYSIS
As technology advances, companies will be able to offer better, safer digital authentication and identification services and products that put trust at the core while delivering excellent user experience, speed, and ease of use. However, consumer perception won’t change overnight. For consumers to fully embrace digital authentication technologies that replace passwords, concerns about privacy, fraud, speed, safety and ease of use must be addressed.