Amazon One, the e-commerce giant's biometric palm reader for retail stores, hasn't drawn as much buzz as its checkout-free Amazon Go, but it could be a vital building block for smart cities.
Amazon this week began expanding Amazon One to more stores beyond the two demo locations at Amazon Go locations in Seattle. The technology is still at an early stage, but is
If successful, Amazon One would serve as an additional enrollment method to build its base, giving Amazon more control over data, marketing and upselling. It would also allow Amazon to control check-in at multiple stores in new markets such as
The biometric technology could also allow Amazon to participate in digital ID projects that combine authentication for financial services and retail with general-purpose IDs for schools and offices. At stadiums, it's easy to imagine an integration between a team's ticket sales, stadium entry, concessions and online shopping via Amazon One.
"It’s interesting that the graphic on the Amazon One website shows a customer using it at a traditional point of sale location instead of displaying the offering as the entry point to an Amazon Go store, which had been the previous positioning," said Thad Peterson, a senior analyst at Aite. "It may signal Amazon’s desire to expand beyond their own holdings to offer a physical point of sale solution that broadens Amazon’s acceptance capabilities in the physical world."
Amazon did not provide an executive for an interview. In statement, the company's PR office said shoppers will have the option of using the Amazon Go app, Amazon app or Amazon One to enter Amazon Go stores and pay. "Once inside the store, they can shop using 'Just Walk Out' technology to add items to a virtual cart," the Amazon spokesperson said, adding that at other physical stores Amazon One is offered as a payment option at checkout. The spokesperson did not comment on future usage.
Amazon Go over the past few years has spurred dozens of competitors, which are building accelerating their checkout-free deployments as the
One advantage Walmart has is its large network of stores, pressuring Amazon to build its retail network through acquisition or by offering technology that can enable buildings of diverse sizes and locations to serve as retail destinations.
"As consumers love convenience I expect Amazon will have a hit on its hands," said Tim Sloane, vice president of Payments Innovation at Mercator Advisory Group, who adds the concept does have challenges.
"Storing millions of palm prints in a central location creates a huge honeypot for criminals to target," Sloane said, adding it's likely Amazon has added the best security controls possible. "But that data has value to criminals and state actors."
As with in-store checkout-free technology, Amazon may have to refine the One enrollment system to reduce false negatives and fake acceptance.
"Unlike most devices that work or don't work, it is possible that degradation of the camera or lens or the protective glass will impact the [false positive/negative] and hence generate customer disputes," Sloane said. "Time will tell."
