Fictional characters have been using parts of their bodies to make things happen for ages. In the 1960’s sitcom “I Dream of Jeannie,” the main character — a 2,000-year-old genie — could execute magic by crossing her arms, closing her eyes, and nodding. Samantha, the main character of “Bewitched,” was able to do magic with a simple twitch of her nose. While Harry Potter and his fellow wizards could execute spells by using magic wands.The real world may lack the grandiosity of fictional magic, but the ability to make things happen with a simple gesture has become a reality. As biometric payments have become more sophisticated, consumers are now able to pay for some items by simply holding their hands or faces in front of a scanner.The advancements in biometric payments are one thing that financial institutions and retailers have in their pockets to help combat cybercrime and fraudulent payments, while the numbers continue to rise. As of 2024, the global cost of cybercrime is roughly $9.22T, according to data from Statista’s Market Insights, and is expected to reach $13.82T by 2028. Not surprisingly, the value of biometric technologies is soaring as well. According to data from Spherical Insights & Consulting, the value of the global biometric technology market was $46.52B in 2023 and is expected to climb to $171.98B by 2033.
Facial Biometric AdvancementsBiometrics have moved beyond simple fingerprint scanning, evolving to become more efficient and harder for criminals to replicate. One such example is JPMorgan Chase’s recent launch of an in-store pilot program with Texas-based Whataburger that allows consumers to pay for food in many of the fast-food chain’s locations with a quick scan of their faces. The program, which is offered in conjunction with software company PopID, eliminates the need for consumers to use mobile phones or physical IDs to confirm their identity. After enrolling in the program by providing a photo of their face — either through a smartphone or using an in-store kiosk — that initial scan is used as a template that is encrypted and connected to an individual’s payment details in PopID’s cloud archive. Once enrolled, a consumer merely needs to look at a camera at a checkout kiosk to make a purchase. Palm Biometric AdvancementsPalm payments were also recently piloted in Paris, France by supermarket chain Carrefour Market. The supermarket partnered with French merchant services technology company Igenico to introduce palm biometrics in conjunction with the 2024 Summer Olympics. Just as each person’s fingerprints are unique, so too are the vein patterns within each individual’s hands. Palm biometrics rely on infrared light wave scanners that can capture the vein pattern within someone’s hand and record that information, using it to compare against future scans of an individual’s hand. As with pay-by-face biometrics, individuals can register their palms and link their biometrics to the payment card of their choice. Palm biometrics are also more secure than fingerprint scanning, as the readers can actually confirm that blood is flowing through the veins of a palm being scanned. Palm vein patterns also can’t be copied from hard surfaces the way that fingerprints can. Harnessing the Benefits As biometric payment options become more sophisticated and readily available, consumers are embracing them — both for ease of use and the additional security they provide. According to data from International Data Corporation (IDC), 77% of consumers who have utilized biometrics on a tablet or smartphone are satisfied with the technology.Financial institutions around the world have been incorporating fingerprint biometrics into their onboarding and payment processing, including community financial institutions such as The Peoples Community Bank through the Touch ID incorporated into their mobile app. It is only a matter of time before facial and palm biometrics become more widely available for financial institutions to incorporate into their offerings to business customers.Biometric payments that utilize facial or palm recognition are more secure than fingerprint biometrics, which can be duplicated, because they are harder to replicate and can reduce instances of identity fraud. This technology also allows for faster, seamless, and more convenient payment processing that will greatly benefit business customers and their clientele.As global use of biometric payment methods increases and such offerings are made available by more and more retailers, community financial institutions need to stay up to date with these developments. Biometric payment options provide an opportunity for community financial institutions to enhance the offerings they can provide business customers that will save them time, decrease instances of fraud, and appeal to their own customer bases.
Facial Biometric AdvancementsBiometrics have moved beyond simple fingerprint scanning, evolving to become more efficient and harder for criminals to replicate. One such example is JPMorgan Chase’s recent launch of an in-store pilot program with Texas-based Whataburger that allows consumers to pay for food in many of the fast-food chain’s locations with a quick scan of their faces. The program, which is offered in conjunction with software company PopID, eliminates the need for consumers to use mobile phones or physical IDs to confirm their identity. After enrolling in the program by providing a photo of their face — either through a smartphone or using an in-store kiosk — that initial scan is used as a template that is encrypted and connected to an individual’s payment details in PopID’s cloud archive. Once enrolled, a consumer merely needs to look at a camera at a checkout kiosk to make a purchase. Palm Biometric AdvancementsPalm payments were also recently piloted in Paris, France by supermarket chain Carrefour Market. The supermarket partnered with French merchant services technology company Igenico to introduce palm biometrics in conjunction with the 2024 Summer Olympics. Just as each person’s fingerprints are unique, so too are the vein patterns within each individual’s hands. Palm biometrics rely on infrared light wave scanners that can capture the vein pattern within someone’s hand and record that information, using it to compare against future scans of an individual’s hand. As with pay-by-face biometrics, individuals can register their palms and link their biometrics to the payment card of their choice. Palm biometrics are also more secure than fingerprint scanning, as the readers can actually confirm that blood is flowing through the veins of a palm being scanned. Palm vein patterns also can’t be copied from hard surfaces the way that fingerprints can. Harnessing the Benefits As biometric payment options become more sophisticated and readily available, consumers are embracing them — both for ease of use and the additional security they provide. According to data from International Data Corporation (IDC), 77% of consumers who have utilized biometrics on a tablet or smartphone are satisfied with the technology.Financial institutions around the world have been incorporating fingerprint biometrics into their onboarding and payment processing, including community financial institutions such as The Peoples Community Bank through the Touch ID incorporated into their mobile app. It is only a matter of time before facial and palm biometrics become more widely available for financial institutions to incorporate into their offerings to business customers.Biometric payments that utilize facial or palm recognition are more secure than fingerprint biometrics, which can be duplicated, because they are harder to replicate and can reduce instances of identity fraud. This technology also allows for faster, seamless, and more convenient payment processing that will greatly benefit business customers and their clientele.As global use of biometric payment methods increases and such offerings are made available by more and more retailers, community financial institutions need to stay up to date with these developments. Biometric payment options provide an opportunity for community financial institutions to enhance the offerings they can provide business customers that will save them time, decrease instances of fraud, and appeal to their own customer bases.
