Shop, Smile, Pay? Facial Recognition in Payments

Payments industry experts say that for the digital economy to continue growing, consumers need to buy-in. But isn’t that the case for every tech innovation success story? People need to use the technology and, ultimately, change their behavior at the register. They’ll adopt mobile payments if they—and as they—experience their value. And that means more convenient and secure transactions. And so it goes: the race is on to make mobile payments just that.

Biometrics is More than a Buzzword

Based on the newest solutions in the marketplace, the path to user-friendly security seems to involve multiple layers of authentication to verify the identity of the card user and approve payments at the point of sale. Aside from traditional PINs, which can be forgotten or stolen, what verification method makes the most sense? PaymentsSource’s Experts in Mobile, Wearables and Open Development Will Win in 2016 says those employing biometrics. After fingerprint scanning, which became popular with Apple, facial recognition just might be the “next big thing” in the word of cashless payments.

Read more in The Rise of Biometrics in Healthcare, Finance, and Payments.

The Marketplace Tests it Out

If a person is willing to prove their identity with their fingerprint—then how about their face? That’s the question on the minds of leaders in the payments tech space, who are developing facial recognition solutions to see if consumers will see beyond their “face value.” Here’s a peek at a few of the innovations being tested and/or rolled out:

• MasterCard’s new phone app asks users if they’d like to use their fingerprint or face to authenticate a payment. If the customer selects the facial recognition option, they simply stare at the phone and blink once to prevent fraudsters from using a photo of the card owner. The app uses the resulting scan to map out the user’s face, converting it to 1s and 0s, and transmits the data to MasterCard for verification. Read CNN Money’s MasterCard Will Approve Purchases By Scanning Your Face for more details.
• Worldpay’s facial biometric verification system is used alongside a PIN. An upward-facing camera embedded into a POS terminal captures an image of the card user and generates a unique biometric template that’s linked to the individual’s card and stored in a secure, central database. The system “learns” the facial profile of the user over time to continually improve identification. See the article about Worldpay on nfcworld.com for more insights.
• Alibaba’s facial recognition solution, “Smile to Pay,” can be used for their online payment service as well as Alipay Wallet mobile payments. The article on CNBC explains their value proposition and testing in the Chinese market.
• Uniqul’s cloud-based solution, which uses facial recognition and an optional PIN, promises an enhanced shopping experience and shorter transaction times. A consumer with a Uniqul account can “sign in” to the system and pay at a participating store simply by approaching the checkout counter. The system, which is installed on a nearby tablet, performs facial recognition and asks the user to click “ok” to verify payment. Visit Uniqul’s website to learn more.

Winners in facial recognition tech will have to achieve the right balance of security and ease of use—and the verdict is still out as to what payment verification process customers will prefer. Some combination of PINs, fingerprints, facial scans, or even the card user’s voice will prove to have what it takes to bring people to the cash-less register time and time again.