IDEX Biometrics and KONA I are partnering to deploy biometric payment and access cards in Japan. With credit card fraud reported by Japanese companies increasing by 30% year over year to USD 294 million, banks in the market are showing interest for biometric smartcard solutions, and especially metal cards.
KONA I expects banks to begin offering high-technology biometric cards “to consumers in the second half of 2024.”
In response to the growing demand for cybersecurity solutions by governments, public and private sector entities KONA I and IDEX Biometrics “will bring state-of-the art secure ID and biometric payment card solutions to market.”
KONA I and IDEX Biometrics smart card platform “provides the cybersecurity market with an end-to-end authentication platform focused on digital security, and compatible with standard protocols such as FIDO2, as well as biometric payments cards.”
Both solutions are reportedly delivered “with optimal customer experiences and security by design.”
KONA I is a global smart card and technology platform provider, “headquartered in South Korea, manufacturing smart card products with an annual production capacity of more than 60 million cards.”
The fast-growing market in Japan is set “to reach 30% of KONA I’s business by 2025.”
Asia, including Japan, is leading the way “for fingerprint biometric innovation in the payments industry, with a high penetration rate of contactless payments.”
Credit cards are the leading cashless payment method “in Japan, and the market growing at a CAGR of 8%, is expected to reach $870 billion by 2028.”
Koichiro Sasai, Head of KONA Japan LLC as a subsidiary of KONA I, said:
“The partnership with IDEX Biometrics enables us to react to the fast-growing demand for biometric smart cards in Japan. We are proud to offer bank customers in Japan the most innovative access and payment solutions. There is a very strong demand from affluent customer who seek the highest security and unparalleled value and user experiences, as offered by biometric metal cards.”
Catharina Eklof, Chief Commercial Officer at IDEX Biometrics, said:
“We are excited to enter Japan with technology innovations that meets the needs for increased cyber security together with KONA I. Through this partnership with KONA I, we are bringing relevant solutions to the growing demand for frictionless payments and smart card solutions, enabling banks in Japan to differentiate and support loyalty and trust with their customers.”
As noted in the update, IDEX Biometrics ASA (OSE: IDEX) is “a global technology leader in fingerprint biometrics, offering authentication solutions across payments, access control, and digital identity.”
Their solutions aim to “bring convenience, security, peace of mind and seamless user experiences to the world.”
Built on patented and proprietary sensor technologies, integrated circuit designs, and software, their biometric solutions “target card-based applications for payments and digital authentication.”
As an industry-enabler they partner “with card manufacturers and technology companies to bring their solutions to market.”