Biometrics

In the four years since Nets set up a laboratory at its Copenhagen headquarters to test new approaches to payments, it’s learned that consumer response to biometric payments technology such as finger-vein checkout is nearly impossible to predict.

The age of PINs and passwords are sadly not yet gone, but new devices and digital services will need more advanced authentication, says Fingerprints' Maria Philstrom.

Payments technology operator Nets’ Creation Lab has launched a pilot that uses facial recognition alone to authorized payments with one merchant in Copenhagen.

While we expect growing consumer demand for biometrics, we also expect to see payments industry players move toward these types of future-proof technologies and away from legacy password-type systems, says Nuance Communications' Simon Marchand.

A cloud of biometric authentication is what will transport us to our own, even better version of the real-time payment-enabled future, says Enacomm's Michael Boukadakis.

A payments platform created by India’s largest retail banks surpassed a billion transactions in October, a milestone that affirms the tremendous growth of services offered by U.S. giants from Walmart Inc. to Amazon.com Inc. and Google.

Anticipating demand from internet of things and advanced smartphones, Fingerprint Cards AB has launched a new multi-biometric technology platform that combines iris screening with facial recognition.

None of the 10 financial institutions in the Bank of Thailand's electronic know your customer verification test have completed the trial, raising a red flag for the myriad biometric risk projects underway.

NatWest is expanding its test of cards that use biometric fingerprints to authorize transactions, citing expanded use cases for contactless payments in the U.K.

With passive biometrics, customers are identified by their behavior online and not by static data such as passwords or one-time codes, says NuData Security's Justin Fox.

Hawaii State FCU has a dedicated branch for testing new products. It's a format that other institutions could follow.

Consumers and banks are both concerned about security tied to contactless payments, says Fingerprints' Lina Andolf-Orup.

Even though security vendors and payments providers are telling merchants they are ready to provide compliance for PSD2 on Sept. 14, a significant challenge remains in the learning curve and technology needs for merchants.

Amazon is reportedly testing technology that allows contactless payments via a hand gesture, applying technology that would provide valuable insight to fuel other initiatives such as Amazon Go.

In a double-teamed effort to showcase new technologies, Finnish telecom operator Telia demonstrated the use of 5G wireless service in an open-to-the-public face payments pilot with OP Bank.

Banks, for the most part, have not advanced their core digital technologies as quickly as payments networks and disruptors ahead of the original PSD2 deadline. And the European Banking Authority has also cited the payments networks for not advancing the 3D Secure 2.0 online authentication model far enough to comply with PSD2 provisions.

Keeping up with changing technology can be difficult but institutions are making investments in ITMs, new lending platforms and more.

Developers have expanded availability of digital identity and biometrics, but traditional methods are holding strong as most companies still rely on usernames and passwords.

Shinhan Card has begun piloting facial recognition payments with its employees at its headquarters’ retail facilities in partnership with South Korea’s largest convenience store operator BGF Retail.

Virtual assistants are being brought forward into a variety of other internet-of-things devices such as automobiles and appliances, with the goal of finding new moments where consumers are willing to spend money — sometimes guided by machine learning.