Third-Party vs. Device-Bound Biometrics: What’s the Difference?
16 April 2025
Third-Party vs. Device-Bound Biometrics: What’s the Difference?
16 April 2025
Biometric authentication is changing the way we prove who we are. But not all biometric solutions work the same way - or offer the same levels of security, privacy, or user experience.
In this post, we’ll break down the two main categories of biometric authentication: device-bound and third-party biometrics. We’ll explain how they work and what makes them different.
Let’s start with the basics.
What Are Device-Bound Biometrics?
Device-bound biometrics - also referred to as local or native biometrics - are stored and processed entirely on the user’s device. Think Apple FaceID or Android Biometrics. When a user authenticates, the app simply asks the device if the biometric matches.
- Data never leaves the device.
- No cloud communication.
- The OS decides if it’s a match.
Local biometrics offer strong privacy, but come with security and control trade-offs, especially when used in regulated sectors like banking or fintech where robust biometric security solutions are required.
What Are Third-Party Biometrics?
Third-party biometrics are managed by external providers and can work across devices and platforms. There are two types:
- Centralized: Biometric templates are stored and matched in a server controlled by the provider.
- Decentralized: Matching is done in a distributed or cryptographically secure way, so no single party ever holds or sees the full biometric.
The best decentralized biometric solutions - like those using secure Multi-Party Computation (sMPC) - protect privacy even during authentication, without storing any biometric data at all.
Comparison Table: Device-Bound vs. Third-Party Biometrics
Key Differences Between Third-Party and Device-Bound Biometrics
Let’s dig deeper into the six core areas where these biometric solutions diverge.
1. Security: Is It Really You?
Device-bound systems rely on the device to say "yes, this is the right person" - but the app or service never sees or verifies who that person is.
This becomes a serious problem if the device is compromised. For example, if someone sees your phone PIN and re-registers their own face, they can access your accounts. From the app’s point of view, it’s still “you”.
Third-party biometric security solutions solve this by tying the biometric to your identity, not your device. Only the real user can authenticate, no matter what device they use.
Read more on the security concerns of local biometrics in our dedicated blog.
2. Privacy: Not All Decentralized Biometrics Are Private
Device-bound biometrics offer good privacy by default - nothing leaves your phone. But centralized systems can’t make that claim. If your biometric is stored in the cloud, it's vulnerable to breaches or misuse.
That’s where decentralized biometric solutions come in. But beware: many “decentralized” systems simply shard the biometric data across servers. It sounds secure, but if those servers are controlled by the same vendor (as they usually are), the data can be reconstructed - defeating the point.
Only decentralized biometric solutions that use sMPC truly protect privacy. With sMPC:
- No biometric data is ever stored or shared.
- Even during authentication, no one—not even the provider—can see your face or fingerprint.
3. User Experience: Beyond the Device
Device-bound biometrics are smooth - as long as you're on the same device and OS. But things fall apart when users switch devices, call support, or reset their phone.
- Users must re-enroll after device changes.
- Call centers often become the fallback (adding cost and frustration).
- OS limitations prevent cross-platform use.
Third-party biometric solutions offer a better user experience:
- Seamless login across devices.
- No re-enrollment needed if a device is lost.
- Consistent experience across web, app, and call centers.
With decentralized biometric security solutions, recovery can be done instantly with a selfie - no support tickets, no SMS codes, no hassle.
4. Deployment: Simplicity vs. Security
Device-bound biometric solutions are relatively easy to deploy. You don’t have to build or integrate much - they’re already on the phone.
But this simplicity is a double-edged sword. Because there’s no identity assurance, organisations often end up layering insecure and expensive backup systems (like SMS OTPs or passwords) on top.
Third-party biometric solutions require integration - but they offer identity assurance and security from day one. Modern providers offer SDKs, APIs, and flexible deployment models that support mobile and web apps, and both on-prem and cloud environments. And critically—they reduce reliance on insecure backups and call centers.
5. Cost: Free Isn’t Always Cheap
Device-bound biometrics come with no licensing costs. But let’s consider the hidden costs:
- A stolen PIN means full access to apps using FaceID.
- Call center authentication can cost USD$5-10 per call.
- SMS OTPs cost per message—and are insecure.
Third-party solutions may have a higher upfront cost, but they:
- Eliminate OTP and support overhead.
- Reduce fraud losses by offering real identity assurance.
- Enable secure self-service recovery with no call center required.
In regulated industries, they also reduce compliance costs by meeting privacy standards like GDPR.
So… Which Should You Choose?
It depends on your priorities. Here’s a quick breakdown:
- If you want basic authentication and control is not important: Device-bound biometrics may be enough.
- If you need strong identity assurance, seamless recovery, and privacy compliance: Third-party biometric security solutions are the better option.
- If you want the highest level of privacy and security without sacrificing UX: Decentralized biometric solutions powered by sMPC—like Keyless—offer the best of all worlds.
Final Thoughts
Biometric authentication is no longer just about convenience - it’s about trust, security, and identity assurance.
Device-bound biometrics are simple, but they lack the control and protection needed in high-risk environments. Centralized systems offer more flexibility but introduce privacy risks.
Decentralized biometric solutions—when implemented correctly—offer a new way forward. By using cryptographic techniques like sMPC, they protect biometric data at every stage, ensuring users are in control of their identity without compromising security or usability.
If your organisation is serious about building secure and private digital experiences, the difference between device-bound and third-party biometric security solutions isn’t just technical—it’s foundational.
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