The Financial ID Briefing brings you top highlights from the world of biometrics, mobile ID, and finance. It is powered by FindBiometrics and Money20/20.
Fingerprint Scanning Payment Cards Get Commercialized
Smart cards continue to be the latest battleground for the fingerprint sensor integration wars, and payment applications are the popular use case fueling the fire. Two new orders of Zwipe’s biometric payment card solution, announced by the company last week, serve as evidence of how quickly things have heated up in the fingerprint smart card space.
While Zwipe has not named either of its new payment card clients, the company referred to them as “and undisclosed customer in Asia,” and “a global tier-1 card manufacturer,” respectively. Both new clients are expected to deploy the smart cards before year’s end.
Zwipe’s commercialization news came within days of MeReal’s biometric card deployment in an open air casino. MeReal’s V2 card features biometrics tech courtesy of Fingerprint Cards and Precise Biometrics, and while it is currently only used in physical access and time tracking capacities, payment applications are in the pipeline.
Apple Confirms P2P Money Transfers Via Siri
Apple officially confirmed that an iOS update scheduled for this fall will enable peer-to-peer mobile payments on the iPhone. Rumors that Apple would bring P2P money transfer to its mobile commerce offerings, further positioning its payments platform as a PayPal alternative by competing with Venmo, have been persistent this year.
Apple’s P2P service will work in tandem with Apple Wallet, and payments to peers can be made via the Messages app or even by voice command through the Siri AI platform. The latter functionality fits into a larger trend of artificial intelligence enabled payments and retail, along with Microsoft Cortana’s comparison shopping skill and Amazon Alexa’s increasingly robust commercial abilities.
The IoT is Transforming Payments, and Visa is Ready to Adapt
Over 80 percent of Americans expressed a strong interest in using connected devices to conduct purchase transactions in a study conducted by Visa and PYMNTS.com on a sample of 2,600 adult smartphone owners. Furthermore, 75 percent of the survey’s respondents reported that they already use non-smartphone devices to conduct said transactions — wearable tech, Amazon Alexa, video game consoles, etc. But despite this expressed enthusiasm, the results showed widely held concern regarding data privacy.
In light of these survey results, Visa is promoting its token service provider (TSP) program, aiming to provide that in-demand layer of privacy and security assurance. The tokenization services provided by the financial institution replace cardholder data with unique encrypted tokens exchanged in online financial transactions that, if intercepted, offer no personal user information to bad actors. The TSP program was launched in fall of 2016. Last week Visa announced the program boasts 13 new partners.