PSD2 및 오픈 뱅킹 바이오메트릭스 인증 시장 : 인증 방식, 전개 모드, 용도, 최종사용자 산업, 조직 규모별 - 세계 예측(2025-2032년)

The PSD2 & Open Banking Biometric Authentication Market is projected to grow by USD 13.89 billion at a CAGR of 10.57% by 2032.

Open banking and PSD2-driven reforms have elevated biometric authentication from an experimental enhancement to a strategic pillar of digital financial security. Over the past five years, industry participants have moved beyond single-factor approaches, embracing identity-centric models that align regulatory requirements with user expectations for frictionless access. Biometric capabilities now sit at the intersection of compliance, user experience, and fraud management, and institutions are recalibrating roadmaps to embed these modalities across customer journeys.

As institutions integrate stronger authentication standards, they must balance privacy, interoperability, and operational scalability. The introduction of standardized APIs and consent frameworks has created opportunities for seamless authentication handoffs between third parties and account providers, while also exposing gaps in identity assurance when adoption is uneven. Consequently, institutions are prioritizing end-to-end design that accounts for device heterogeneity, accessibility needs, and varying levels of biometric maturity across markets.

In the immediate term, banks and fintechs are piloting converged authentication architectures that combine behavioral signals with physiological modalities to reduce friction and increase resilience against spoofing. Simultaneously, regulators are clarifying expectations around user consent and biometric data handling, which compels organizations to invest in privacy-by-design implementations and robust audit capabilities. These parallel trends underscore why biometric authentication is now a central element of competitive differentiation in open banking ecosystems.

How recent technological breakthroughs and regulatory clarifications have reshaped biometric authentication strategies for open banking providers

The landscape for biometric authentication in PSD2 and open banking has undergone transformative shifts driven by technological maturation, regulatory updates, and changing consumer behavior. Advances in sensor fidelity and on-device compute have enabled higher accuracy and lower false accept rates, which in turn have expanded the viable use cases from simple login to transaction confirmation and continuous authentication. These technological improvements have been complemented by machine learning models that leverage multimodal fusion to detect anomalous patterns and resist presentation attacks more effectively.

Regulatory evolution is another catalytic force. Clarifications around strong customer authentication and the conditions for exemptions have driven investment in capabilities that meet both security and usability objectives. At the same time, data protection frameworks are imposing stricter requirements for storage, consent management, and purpose limitation, pushing architects to favor decentralized or tokenized approaches to biometric templates.

Market behavior has also shifted. Consumers now expect seamless, mobile-first experiences and show greater willingness to use biometrics when security and convenience are demonstrably improved. This has encouraged incumbents and challengers alike to integrate biometrics across onboarding, authentication, and fraud monitoring functions. In aggregate, these shifts are creating an environment where biometric authentication is no longer optional for organizations that aim to lead in open banking; it is an operational necessity that requires cross-functional governance and continuous validation.

Assessing the cumulative operational and procurement consequences of United States tariffs introduced in 2025 on biometric hardware and deployment strategies

The introduction of tariffs in the United States in 2025 has had a cumulative and nuanced effect on global supply chains for biometric hardware and related components, influencing deployment timelines and procurement strategies for institutions relying on physical sensors. Tariff-driven cost increases have influenced the economics of device-based biometric modalities, prompting some organizations to re-evaluate trade-offs between native device sensors and peripheral hardware that may be subject to higher import duties.

Consequently, procurement teams have shifted toward sourcing strategies that prioritize domestic manufacturing partners or suppliers from jurisdictions with favorable trade arrangements, while software vendors accelerated offerings that reduce dependence on specialized hardware. This shift has increased interest in behavioral biometrics and purely software-driven modalities that rely on existing user hardware and networked signals, thereby mitigating exposure to tariff volatility.

Operationally, the cumulative impact has led to longer lead times for sensor shipments and tighter inventory management for ATM and point-of-sale deployments. Institutions have adapted by phasing rollouts, leveraging interim authentication models, and negotiating longer-term pricing agreements with strategic suppliers. While tariffs have created near-term cost pressures, they have also driven strategic realignment toward resilient sourcing, architecture designs that emphasize software-native capabilities, and closer collaboration between procurement, security, and product teams to sustain rollout momentum under changing trade conditions.

Actionable segmentation insights that connect authentication modalities, deployment modes, applications, industry verticals, and organizational scale to practical technology and governance choices

Segmentation provides a practical framework to align technology choices, deployment models, and use cases with organizational priorities. Based on authentication method, the market is studied across behavioral biometrics, facial recognition, fingerprint, iris recognition, and voice recognition, with behavioral biometrics further examined through gait analysis and keystroke dynamics. This differentiation highlights where investments should flow: modalities that capitalize on pervasive sensors and continuous signal collection are prioritized for frictionless experiences, while high-assurance physiological modalities are reserved for elevated-risk transactions.

Based on deployment mode, the market is studied across cloud and on premises, with cloud deployments further categorized into private cloud and public cloud. The choice between cloud and on-premises affects latency, data sovereignty, and scalability, and the private versus public cloud distinction influences control, isolation, and integration complexity. Organizations often adopt hybrid architectures to balance regulatory constraints with the agility benefits of cloud-native services.

Based on application, the market is studied across ATM kiosk, internet banking, mobile banking, and point-of-sale terminals, with the mobile banking segment further analyzed across Android and iOS platforms and the point-of-sale terminals segment further divided into countertop and self-service kiosk environments. Applications determine the user journey and the acceptable authentication friction; mobile banking trends favor seamless biometric unlock and transaction approval flows, while ATM and kiosk deployments require resilient anti-spoofing measures and ruggedized sensor support.

Based on end user industry, the market is studied across banking, financial services, and fintech, with banking further broken down into corporate banking and retail banking, financial services further dissected into asset management and insurance, and fintech further explored across payment services and wealth tech. Each vertical has unique risk profiles and regulatory obligations that shape authentication choices, with corporate banking typically requiring higher assurance workflows and fintechs often prioritizing speed and user experience.

Based on organization size, the market is studied across large enterprise and small and medium enterprise. Organizational scale influences governance maturity, procurement leverage, and the capacity to absorb integration complexity, which in turn affects the pace and scope of biometric adoption across footprints and channels.

Regional dynamics and regulatory environments that dictate differentiated biometric adoption strategies across the Americas, Europe Middle East & Africa, and Asia-Pacific markets

Regional dynamics shape both regulatory expectations and technology adoption patterns for biometric authentication in open banking. In the Americas, market participants grapple with a mix of federal guidance and state-level privacy regimes that emphasize data protection and consumer transparency, while commercial banks and fintechs pursue mobile-first authentication strategies that leverage device-native sensors and behavioral analytics. Cross-border data flows and partnerships with Latin American payment networks also influence the pragmatics of template storage and consent management.

In Europe, Middle East & Africa, the confluence of PSD2 legacy frameworks and diverse national implementations creates a complex compliance landscape; here, institutions emphasize interoperable APIs, strong customer authentication alignment, and rigorous handling of biometric consent. Meanwhile, Middle Eastern jurisdictions are rapidly building digital identity frameworks, and African markets show strong innovation in mobile biometric onboarding due to limited legacy infrastructure and high mobile penetration. These regional variations drive differentiated vendor offerings and deployment models that respect local regulatory and infrastructural realities.

In Asia-Pacific, rapid mobile adoption and favorable device ecosystems support broad uptake of biometric authentication, with mature markets demonstrating high acceptance of facial and fingerprint modalities and emerging markets innovating with biometric-enabled payment rails and digital ID programs. Governments and large ecosystem players frequently play an active role in shaping standards and promoting interoperable identity initiatives, accelerating commercial integration across banking, payments, and government services. Across regions, leaders are those who adapt technical design and governance to local legal regimes while maintaining consistent user experience and security assurances.

Company capability and partnership criteria that enterprise buyers use to select biometric providers with integration, certification, and operational excellence

Key company considerations center on capability depth, integration maturity, and the ability to align product roadmaps with regulatory timelines. Vendors that offer multimodal solutions and invest in adversarial testing and independent certification tend to be prioritized by enterprise buyers because their offerings reduce integration risk and accelerate compliance validation. Meanwhile, companies that provide flexible deployment modes-including on-premises, private cloud, and hardened edge options-are positioned to address the fragmented regulatory constraints and data residency needs of large institutions.

Technology partners that embed explainability and model governance into their machine learning stacks enable more transparent assurance to auditors and regulators, which has become a decisive selection criteria. Equally important are vendors with robust SDKs and platform APIs that simplify integration across mobile platforms, ATM software stacks, and point-of-sale systems; interoperability reduces time-to-market and lowers total cost of integration.

Strategic partnerships between biometric technology providers and systems integrators are increasingly common, creating bundled services that combine product, integration, and managed services. Buyers favor vendors that demonstrate strong post-deployment support, continuous model updates for anti-spoofing, and proven operational playbooks for incident response. Ultimately, the preferred suppliers are those that combine technical robustness with commercial flexibility and domain expertise in financial services compliance.

Practical, prioritized recommendations for leaders to operationalize biometric authentication while managing risk, privacy, vendor governance, and customer experience

Industry leaders must pursue a set of pragmatic, actionable moves to convert biometric capabilities into sustained competitive advantage. First, adopt a risk-based authentication strategy that maps transaction risk tiers to appropriate biometric modalities and assurance levels, enabling adaptive flows that minimize friction for low-risk interactions while escalating verification for high-value actions. Aligning security policies with product design reduces false rejections and customer friction while maintaining regulatory compliance.

Second, invest in privacy-preserving architectures such as template-on-device, tokenization, or cryptographic approaches that limit exposure of raw biometric data. These designs not only reduce compliance burden but also increase customer trust when communicated clearly through consent and transparency mechanisms. Third, prioritize interoperability by building against standardized APIs and ensuring SDK compatibility across Android, iOS, ATM platforms, and point-of-sale systems so that integrations scale predictably.

Fourth, strengthen vendor governance by defining clear SLAs for anti-spoofing updates, model retraining cadences, and incident response responsibilities. Procurement should require independent testing and certification evidence. Fifth, build cross-functional capabilities that combine product, compliance, security, and UX teams to operationalize continuous monitoring, user research, and regulatory change management. Taken together, these actions will accelerate secure adoption while managing operational risk and protecting customer trust.

Rigorous research methodology combining stakeholder interviews, technical validation, scenario analysis, and regulatory cross-checks to ensure reliable and actionable findings

The research methodology combines triangulation of primary stakeholder interviews, technical validation exercises, and secondary evidence gathering to ensure a robust and reproducible analysis. Primary inputs include structured interviews with product and security leaders from banks, fintechs, payment processors, and identity providers to capture operational priorities, integration challenges, and deployment experience. These qualitative insights are complemented by technical validation exercises that assess modality resilience, anti-spoofing efficacy, and integration complexity across device classes.

Secondary evidence was compiled from publicly available regulatory guidance, standards bodies, and vendor technical documentation to map legal obligations, interoperability standards, and architectural patterns. The approach emphasizes cross-validation: claims from interviews were tested against technical benchmarks and regulatory texts to minimize bias and surface practical constraints. Methodological rigor also involved scenario analysis to explore the impact of trade policy shifts, regional regulation divergence, and adoption barriers across enterprise segments.

Finally, stakeholder feedback loops were used to refine findings and ensure recommendations are actionable for practitioners. Throughout the research process, attention was paid to data privacy and ethical considerations, ensuring that evaluations of biometric modalities focused on efficacy, governance implications, and user-facing impacts rather than proprietary performance claims.

Conclusion summarizing how disciplined integration of biometrics, governance, and user-centered design unlocks secure and scalable open banking experiences

Biometric authentication has matured into a strategic capability within PSD2 and open banking ecosystems, but its effective deployment requires thoughtful orchestration across technology, governance, and procurement. The most successful adopters do more than implement sensors; they design adaptive authentication journeys that balance risk, privacy, and user experience. They also invest in vendor governance, cross-functional operating models, and privacy-preserving architectures that reduce systemic risk while enabling scale.

Challenges remain, including managing cross-border data flows, maintaining model performance amid device diversity, and navigating evolving regulatory interpretations. However, these challenges are manageable through pragmatic segmentation of use cases, careful selection of deployment modes, and investment in explainable models and independent testing. Institutions that proactively align product roadmaps with compliance timelines and that favor interoperable, software-first architectures will be best positioned to extract long-term value from biometric authentication investments.

In conclusion, biometric authentication is not a panacea, but when integrated with disciplined governance and user-centered design, it becomes a powerful enabler of secure, convenient open banking experiences. Organizations that take a strategic, risk-aware approach will safeguard customer trust while unlocking operational efficiencies and new service models.

Table of Contents

1. Preface

• 1.1. Objectives of the Study
• 1.2. Market Segmentation & Coverage
• 1.3. Years Considered for the Study
• 1.4. Currency & Pricing
• 1.5. Language
• 1.6. Stakeholders

2. Research Methodology

3. Executive Summary

4. Market Overview

5. Market Insights

• 5.1. Integration of multi-modal biometrics for seamless PSD2-compliant authentication
• 5.2. Deployment of behavioral biometrics to enhance fraud detection in open banking transactions
• 5.3. Adoption of decentralized identity frameworks to strengthen biometric privacy in PSD2 services
• 5.4. Standardization of biometric authentication protocols to ensure PSD2 regulatory compliance across EU banks
• 5.5. Emergence of AI-driven liveness detection to counter sophisticated spoofing attacks in open banking
• 5.6. Integration of secure element chips with biometrics to enable offline PSD2 transactions in rural areas
• 5.7. Growing partnerships between fintechs and telecom operators to leverage SIM-based biometric authentication

6. Cumulative Impact of United States Tariffs 2025

7. Cumulative Impact of Artificial Intelligence 2025

8. PSD2 & Open Banking Biometric Authentication Market, by Authentication Method

• 8.1. Behavioral Biometrics
  • 8.1.1. Gait Analysis
  • 8.1.2. Keystroke Dynamics
• 8.2. Facial Recognition
• 8.3. Fingerprint
• 8.4. Iris Recognition
• 8.5. Voice Recognition

9. PSD2 & Open Banking Biometric Authentication Market, by Deployment Mode

• 9.1. Cloud
  • 9.1.1. Private Cloud
  • 9.1.2. Public Cloud
• 9.2. On Premises

10. PSD2 & Open Banking Biometric Authentication Market, by Application

• 10.1. ATM Kiosk
• 10.2. Internet Banking
• 10.3. Mobile Banking
  • 10.3.1. Android
  • 10.3.2. iOS
• 10.4. Point Of Sale Terminals
  • 10.4.1. Countertop
  • 10.4.2. Self Service Kiosk

11. PSD2 & Open Banking Biometric Authentication Market, by End User Industry

• 11.1. Banking
  • 11.1.1. Corporate Banking
  • 11.1.2. Retail Banking
• 11.2. Financial Services
  • 11.2.1. Asset Management
  • 11.2.2. Insurance
• 11.3. Fintech
  • 11.3.1. Payment Services
  • 11.3.2. Wealth Tech

12. PSD2 & Open Banking Biometric Authentication Market, by Organization Size

• 12.1. Large Enterprise
• 12.2. Small And Medium Enterprise

13. PSD2 & Open Banking Biometric Authentication Market, by Region

• 13.1. Americas
  • 13.1.1. North America
  • 13.1.2. Latin America
• 13.2. Europe, Middle East & Africa
  • 13.2.1. Europe
  • 13.2.2. Middle East
  • 13.2.3. Africa
• 13.3. Asia-Pacific

14. PSD2 & Open Banking Biometric Authentication Market, by Group

• 14.1. ASEAN
• 14.2. GCC
• 14.3. European Union
• 14.4. BRICS
• 14.5. G7
• 14.6. NATO

15. PSD2 & Open Banking Biometric Authentication Market, by Country

• 15.1. United States
• 15.2. Canada
• 15.3. Mexico
• 15.4. Brazil
• 15.5. United Kingdom
• 15.6. Germany
• 15.7. France
• 15.8. Russia
• 15.9. Italy
• 15.10. Spain
• 15.11. China
• 15.12. India
• 15.13. Japan
• 15.14. Australia
• 15.15. South Korea

16. Competitive Landscape

• 16.1. Market Share Analysis, 2024
• 16.2. FPNV Positioning Matrix, 2024
• 16.3. Competitive Analysis
  • 16.3.1. Thales S.A.
  • 16.3.2. IDEMIA Group
  • 16.3.3. NEC Corporation
  • 16.3.4. Daon Limited
  • 16.3.5. iProov
  • 16.3.6. Accenture
  • 16.3.7. HID Global Corporation
  • 16.3.8. Suprema, Inc.
  • 16.3.9. Aware, Inc.
  • 16.3.10. BIO-key International, Inc.