The retail industry has been warming up to biometrics in recent years, with a heavy focus on facial recognition for loss prevention and security purposes, according to Biometric Update. However, new technology and the increasing use of digital wallets have paved the way for the next wave of biometrics in retail: biometric-based payment systems.
What are Biometric-Based Payment Systems?
Biometric payment systems use biometric authentication to identify customers at point of sale and automatically distribute funds from their linked account. Using a distinct characteristic such as palm vein patterns, fingerprint or iris recognition, biometric authentication identifies and verifies individuals.
Forward-thinking companies have begun to embrace biometric payment systems as a method to enhance the transaction process at point of sale.
Benefits of Biometric-Based Payment Systems
For both consumers and retailers, biometric payment makes checking out quicker and easier. Rather than taking out a physical card and typing in a PIN, customers use a unique personal modality such as palm vein patterns to securely verify themselves. Biometric payments are even faster than digital wallets like Apple Pay because they completely eliminate the need to carry a device like a smartphone. With biometric payments, retailers can reduce checkout to seconds, eliminate queues, redeploy labor and improve customer satisfaction.
For consumers, the most obvious benefit is that they won’t have to remember PINs and passwords. PINs and passcodes not only can be difficult for consumers to remember, but they are also not secure. Biometric authentication systems use a unique, personal characteristic to securely verify users.
Are Retailers Ready for Biometric Payments?
Biometric payment systems are not necessarily new in retail. In 2004, a San Francisco-based startup rolled out payment systems based on fingerprint recognition technology to Piggly Wiggly stores. However, the grocery chain had to stop offering the service after functionality and funding issues led the firm that owned the technology to file for bankruptcy.
So, what makes 2020 different?
Apple released the iPhone 5S with fingerprint recognition technology used to unlock the phone in 2013. About a year later, Apple Pay was released, allowing users to store credit and debit card information on their devices to make payments via NFC. Bringing biometric authentication and digital wallets to millions of people helped the technology evolve from foreign and potentially frightening to normal, everyday tech. Users have developed a sense of trust in biometric authentication and digital payment. According to Goode Intelligence, 2.6 billion people will be using biometrics for payments by 2023.
Fujitsu PalmSecure for Retail Payments
As retailers search for innovative ways to speed up the checkout process and eliminate queues, the use of biometric payment systems at retail locations is expected to increase. Fujitsu Frontech North America is on the cutting edge of biometric payment systems. At NRF 2020, Fujitsu showcased a walkthrough RFID self-checkout portal with PalmSecure technology allowing customers to complete a transaction – from scanning all items to paying and exiting the store – within seconds.
Fujitsu PalmSecure is an easy-to-use, contactless biometric authentication technology that reads the palm vein patterns hidden under the skin to identify and verify individuals. This form of biometric authentication is extremely secure because the palm vein patterns are under the skin, making them virtually impossible to forge. PalmSecure biometric authentication is already being used by millions of patients and members at banks.
The barriers for widespread use of biometric authentication have broken down in recent years thanks to improved accuracy and speed, ease of use, and changing consumer attitudes. With seamless integration with Fujitsu PalmSecure technology, expect retailers across the globe to start rolling out self-checkout solutions with biometric-based payment systems.
Contact Fujitsu Frontech North America Today
Fujitsu PalmSecure biometric authentication technology is secure, hygienic and highly reliable. The small form factor and easy operation allow for seamless integration with various applications. For more information about PalmSecure technology, contact Fujitsu Frontech North America today at (877) 766-7545 or FFNA.email@example.com.