IDEX Biometrics and KONA I to Deploy Biometric Payment Cards in Japan

KONA I and IDEX Biometrics have announced a partnership to introduce biometric payment and access cards in Japan. This move comes in response to a surge in credit card fraud, which has seen a 30% year-on-year increase, equating to USD 294 million.

KONA I anticipates that banks will start offering these high-tech biometric cards to customers in the latter half of 2024. The partnership aims to address the growing demand for cybersecurity solutions from governments, public and private sector entities.

Addressing Cybersecurity Needs

The biometric smart card platform, developed by KONA I and IDEX Biometrics, will offer the cybersecurity market an end-to-end authentication platform. It focuses on digital security and is compatible with standard protocols such as FIDO2. It also includes biometric payments cards, with both solutions designed to provide optimal customer experiences and security.

KONA I, a global leader in smart card and technology platforms, is based in South Korea. It produces more than 60 million smart card products annually.

Market Growth in Japan

The market in Japan is growing rapidly and is expected to constitute 30% of KONA I’s business by 2025. The region, including Japan, is leading the way in fingerprint biometric innovation in the payments industry. This is largely due to the high penetration rate of contactless payments.

Credit cards are the most popular cashless payment method in Japan. With the market expanding at a CAGR of 8%, it is projected to reach $870 billion by 2028.

New Partnership, New Opportunities

According to Koichiro Sasai, Head of KONA Japan LLC, the collaboration with IDEX Biometrics allows them to address the increasing demand for biometric smart cards in Japan. The biometric metal cards offer unparalleled value and user experiences, satisfying the high security demands of affluent customers.

Similarly, Catharina Eklof, Chief Commercial Officer at IDEX Biometrics, expressed her excitement about the new partnership. She stated that it enables them to bring relevant solutions to the growing demand for frictionless payments and smart card solutions, helping banks in Japan to build loyalty and trust with their customers.