NEW YORK—Metal bank cards are no longer just stylish status symbols for the ultra-wealthy. The latest generation now integrates biometric authentication and tap-to-verify technology, enabling users to approve transactions instantly, PYMNTS.com reported.
“Think of it as two-factor authentication, but without the hassle of one-time codes or easily hackable passwords,” PYMMTS said.
According to the PYMNTS Intelligence report, 77% of surveyed financial institutions are considering solutions like tap-to-authenticate as a powerful new layer of security.
“The appeal is clear: Rather than relying on an easily stolen PIN or a hacker-breached password, customers will verify transactions with a physical card that requires their presence to function. After all, metal cards with authentication technology can act as a hard stop to many types of credential-based fraud. This added layer of security helps make it nearly impossible for cybercriminals to execute fraudulent logins or unauthorized transactions,” PYMNTS said.
PYMNTS likened the fight against fraud to an arms race.
“As criminals develop more advanced hacking techniques, banks are under increasing pressure to innovate or suffer the consequences. Metal authentication cards and passwordless banking may be the only way forward in an era where passwords are more of a liability than a security measure,” PYMNTS said.
As the financial industry races toward a future without passwords, security experts warn that speed is crucial, PYMNTS said.
“The faster banks move, the harder it will be for fraudsters to adapt and exploit new vulnerabilities,” PYMNTS said.
PYMNTS Intelligence data finds that more banks prefer metal cards for tap-to-authenticate technology (41%) compared to plastic for the same use (25%). Banks more affected by fraud tend to have a stronger interest in metal cards and anticipate better impacts from adopting the technology.
Larger institutions drive adoption, with 69% of banks with over $100 billion in assets expressing a strong level of interest in metal cards. Add in the 23% of somewhat interested large banks, and the pool of large banks interested in metal payment cards grows to 92%, PYMNTS said.