Will Biometric Payment Methods be the New Form of Credit Cards?

 
Contactless payment methods were all the rage a few years ago, with Square reporting that just last year, 92 percent of retailers offered a contactless payment method to customers. But now, there’s a new way to pay—using biometric authentication.

“Biometrics—if you haven’t heard that term before—it’s really using a characteristic about a person for authentication and identification. Think about like fingerprints, facial scans, things like that,” stated William Budde, host of The Banking Budde.

National chains are catching on. J.P. Morgan plans to pilot biometric payment methods such as palm and facial recognition with some U.S. retailers. Amazon One is also allowing their customers to scan their palm to pay in store at Panera.

What are the benefits? Faster and more simplified transactions. And, some may argue, improved security—but others have their doubts on this one. Is biometric authentication truly secure? Maybe not, explained Budde. Privacy is another issue at hand. In fact, Amazon is currently facing a lawsuit, as they allegedly did not inform consumers in New York Amazon Go stores that they were tracking biometric information such as facial scans and fingerprints.

The regulatory aspect also poses a challenge. “The other thing that really is going to come to the floor is from a regulation perspective. There’s not a whole lot of regulation around this area right now. The regulation that does exist tends to be at the local level, which makes it very hard to roll out functionality for large chains or national offerings, things that both Panera and J.P. Morgan offer,” Budde explained.

Will biometric authentication be the next best payment method after Apple Pay® for large chains? Maybe, but there are some barricades these companies are facing that leave some consumers doubtful. William Budde, Host of The Banking Budde, shares his thoughts on some of the most recent biometric payment rollouts.

Follow us on social media for the latest updates in B2B!

Image

Latest

careers in hvac
Navigating Careers in HVAC: Jason Saunders’ Journey to the Top
February 27, 2024

On this episode of “Straight Outta Crumpton,” hosts Greg Crumpton and Gabrielle Bar explore the dynamic careers in Heating, Ventilation, and Air Conditioning (HVAC). They have a chat with Jason Saunders, the President of Indoor Environmental Services, about his extraordinary journey from a high school graduate to a top executive in the field. Saunders […]

Read More
continuous improvement
JUST THINKING…Talking CONTINUOUS IMPROVEMENT with Lesli Laughter
February 27, 2024

Innovative planning and continuous improvement in education stands at the forefront of school improvement, a strategic linchpin that propels institutions toward a future of achievement and excellence. At the heart of this transformation is adopting a continuous improvement mindset, where educators and administrators constantly seek better strategies and outcomes for their students. Just Thinking […]

Read More
lithium-ion
Lithium-Ion Breakthroughs Promise a Greener Road Ahead for EVs
February 26, 2024

In sustainable transportation, the conversation often pivots to the technology powering our journey toward a greener future. At the heart of this dialogue is the evolution of battery technology, particularly lithium-ion batteries, which have become a cornerstone for electric vehicles (EVs). Dr. Veronika Wright also known as Electrified Veronika™ offers a glimpse into the […]

Read More
Securing School Campuses: Harnessing Innovative Technologies
Securing School Campuses: Harnessing Innovative Technologies
February 26, 2024

In the ever-evolving landscape of school security, Adam Coughran, President of Safe Kids Inc., emphasizes the importance of innovative technologies and strategies to safeguard students, teachers, and staff. From visitor management systems to advanced surveillance technology, educational institutions are continuously seeking new ways to enhance security measures and respond effectively to potential threats. One […]

Read More