The partnership between Fingerprint Cards (FPC) and Valid represents a significant development in Brazil’s payment sector. Their collaboration to introduce biometric payment cards aims to redefine the security, convenience, and hygiene of contactless transactions, establishing a new benchmark for the industry.
The integration of Fingerprint Cards’ second-generation T-Shape (T2) sensor module and sophisticated software platform with Valid’s manufacturing capabilities is set to produce a payment card that is both technologically advanced and user-friendly.
The implications of these cards extend far beyond their technological sophistication. The shopping experience is poised to become more secure and efficient, with transactions completed through a simple tap of a fingerprint-enabled card on a payment terminal. This seamless process not only addresses the security concerns associated with the increasing popularity of contactless payments but also enhances the overall customer experience.
In a busy retail environment, this technology can lead to shorter queues and faster checkout times, making shopping more efficient. For retailers, the reduction in transaction times can result in increased customer throughput and potentially higher sales.
The benefits of biometric payment cards extend beyond the point of sale. Biometric authentication significantly reduces the risk of fraud, fostering greater confidence among consumers and merchants. This increased security protects consumers’ financial information and reduces fraud-related costs for businesses and financial institutions.
Moreover, the adoption of biometric payment cards aligns with Brazil’s regulatory framework. The National Monetary Council’s mandate for transaction integrity, reliability, security, and confidentiality is inherently supported by biometric technology. This ensures compliance with regulations and positions banks at the forefront of innovation, providing them with a competitive edge in the market.
Fingerprint Cards, a Swedish biometrics company, develops and produces advanced biometric systems. Founded in 1997 by Lennart Carlson, the company has a history rooted in the pioneering work of Bo Löfberg during the 1980s. Löfberg, who developed and patented early fingerprint sensor technology, passed away in 1986, leaving the technology unfinished. Lennart Carlson acquired the license and established Fingerprint Cards to continue this work.
The company went public in 1998, though it had yet to complete a market-ready product. At the CeBIT fair in 1999, Ericsson Mobile Communications showcased a prototype accessory using Fingerprint Cards’ sensor and ASIC. Fingerprint Cards also secured licensing deals with Motorola and Texas Instruments, with the latter developing the Fingerprint Authentication Development Tool (FADT) based on Fingerprint Cards’ sensors.
Despite these developments, Fingerprint Cards faced significant financial challenges, incurring large losses during its early years. Investors raised 250 million SEK to sustain the company until it began generating revenue. Lennart Carlson stepped down as CEO in 2009, succeeded by Johan Carlström.
2013 – 2015: Market Entry and Growth
Fingerprint Cards launched its first sensor in 2013, compatible with Android and Windows platforms. Under Carlström’s leadership, the company started to generate sales and saw its stock price rise dramatically, from 6 SEK at the start of 2015 to 118.20 SEK by the end of the year. However, Carlström resigned in 2015 due to an ongoing investigation, and Jörgen Lantto took over as CEO.
2015 – Present: Expansion and Challenges
In July 2017, Fingerprint Cards was included in the OMX Stockholm 30 index, representing the 30 most traded stocks on the Stockholm Stock Exchange. However, the company was removed from the index a year later, in July 2018. The period saw growing competition and the company issued five profit warnings during 2017 and 2018, causing its stock price to plummet. At its peak, Fingerprint Cards had a market value of 42.7 billion SEK, which dropped to 4.2 billion SEK by May 2019. The company anticipated a continuing decline in demand for fingerprint sensors and began diversifying into iris recognition and smart cards.
Christian Fredrikson replaced Jörgen Lantto as CEO in 2016. In March 2017, Fingerprint Cards’ stock fell by 40% following a profit warning. The stock continued to decline, hitting a low of 6 SEK in mid-2018, but recovered to around 13 SEK by April 2019. Revenue also reflected the company’s struggles, with figures dropping from 6638 million SEK in 2016 to 1535 million SEK in 2018.
Today, Fingerprint Cards continues to innovate in the biometrics field, adapting to market demands and exploring new technologies to maintain its position in the competitive landscape.
This collaboration between Fingerprint Cards and Valid exemplifies the growing global trend of integrating biometric technology into financial services. It serves as a model for other markets seeking to enhance their payment systems, with the potential to inspire similar innovations worldwide.
The introduction of biometric payment cards in Brazil signifies more than just a technological advancement; it represents a paradigm shift in how financial transactions are perceived and conducted. This technology promises to make payments more secure, intuitive, and user-centric. The practical implications of biometric payment cards are likely to reshape the retail experience, boost consumer confidence, and enhance the overall efficiency and security of Brazil’s financial ecosystem.
This innovation is expected to set a precedent for the global payment industry, demonstrating the transformative potential of biometrics in redefining the future of financial transactions.
