Biometric Scanning and the Year 2012
Pastor Dale Morgan
Biometric Scanning and the Year 2012*
Apr 12th, 2007 7:26 AM
Imagine a day when the only item you'll need to take to the supermarket
to complete a transaction is your index finger.
The concept is a reality in a limited capacity in some places but
observers believe the technology could become mainstream by 2012.
Biometric scanning to make transactions is expected to be one of many
new methods that are part of a revolution in payments technology already
taking place.
The long reign of swipe-and-sign plastic cards appears to be weakening,
with retailers and others considering other ways to make the payment
process both more secure and faster.
In the United States, NCR Corporation – a 123-year-old maker of cash
registers – is providing registers that include fingerprint scanner
locks for staff to reduce loss and time-attendance fraud.
NCR says the next phase is to get customers feeling comfortable with the
idea of using their biological information to make casual purchases.
"Most retailers are interested in pursuing it with the retail staff to
begin with because the idea is when the staff get used to it then they
can encourage consumers to use to it," NCR product marketing manager
Carrie Smola said.
"At first we really think consumers are going to be hesitant to use the
technology just because it is something new and different in the store."
Leading the charge in this area is another US company, Pay By Touch,
which uses biometric technology to allow consumers to pay and get
loyalty discounts at checkout counters.
Pay By Touch has partnered with NCR to offer the consumer solution on a
large scale by merging the fingerprint authentication system with NCR's
biometric point-of-sale hardware.
Biometric information in its various forms has gained acceptance in a
government environments, predominantly for security reasons.
And in the consumer sector, Japanese and South Korean banks are using
fingerprint scanners as a form of identification at automated teller
machines.
Christophe Uzureau, a research analyst with Gartner, says the biggest
hindrance to the advancement of the technology in the retail sector is
public perception about privacy.
But once this hurdle is cleared, biometric payment systems could give
some leverage to retailers looking to move their revenue streams away
from credit.
"What's happening is a much more flexible marketplace," Mr Uzureau said.
"What some banks are trying to think is how we can respond to the wide
range of preferences of the consumers.
"The idea is to put pressure on the card industry and improve the
negotiating power of merchants."
Gartner expects fingerprint purchases to become a mainstream reality
within five to 10 years.
In Australia, NCR is in the initial marketing stage of selling its
biometric lock applications to vendors.
Australian banks and merchants are only just beginning to explore the
range of emerging payment options.
Commonwealth Bank recently introduced its contactless MasterCard known
as PayPass, which allows holders to make payments of up to A$35 (NZ$40)
without needing to swipe or sign.
And the ubiquitous mobile phone – which has been increasing its range of
functionality – is also emerging as a possible replacement to the
plastic card but, again, is expected to be one of several possible
payment alternatives.
"Beyond the distribution of digital content, in mature payment markets
with well-established card networks, the opportunity for mobile payment
initiatives exists, but it is niche- oriented and tends to be local," Mr
Uzureau said.
"For instance, to support remote top-up for mobile phone prepaid
balance, parking and ticketing services."
© Fairfax New Zealand Limited 2007.