Biometric payment cards are facing significant adoption hurdles that will likely keep the technology confined to niche markets for the foreseeable future, according to a new report from ABI Research. The research firm projects conservative shipment estimates of just 1.27 million units by 2029, up from 310,000 units in 2023.
The primary barriers include steep manufacturing costs, with biometric cards currently priced at $15-20 per unit—nearly ten times more expensive than standard contactless cards. Production complexities and low yield rates are further complicating large-scale deployment efforts.
“The reality is that biometric payment cards are not going to become a mass-market solution anytime soon,” said Phil Sealy, Research Director at ABI Research. This assessment marks a significant shift from earlier industry optimism about the technology’s potential.
The challenges have already claimed their first major casualty, with pioneer company Zwipe recently filing for bankruptcy. The news is particularly notable given Zwipe’s previous efforts to expand the technology’s reach through strategic partnerships in the Middle East.
In response to these market conditions, major players including IDEMIA, Thales, and IDEX Biometrics are pivoting their focus toward alternative applications such as access control systems and cryptocurrency cold wallets. This strategic shift comes despite earlier progress in securing key certifications for payment applications.
The lack of a standardized enrollment process remains another significant obstacle, even as the broader financial industry moves toward biometric authentication. ABI Research warns that without meaningful market success in the next 12-24 months, the industry could face further consolidation and reduced investment.
While the report projects that alternative markets like access control and crypto wallets will drive increased adoption by 2027-2029, even the most aggressive forecasts only predict shipments reaching 43 million units by 2029—a fraction of the traditional payment card market.
Source: ABI Research
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March 19, 2025 – by Cass Kennedy
