Face value: New technology changes checkout game, but can face privacy hurdles Down Under
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In an age where convenience is king and technology is the court jester, the way we pay for our groceries, clothes, and even our morning coffee is changing at a breakneck pace. Gone are the days of counting coins and notes; digital payments have taken the throne in Australia.
However, what if I told you that the future of transactions might not involve wallets, cards, or even phones?
That's right, the next big thing in the world of payments could be paying with nothing but your face—a concept that's already smiling at 760 million users worldwide.
Facial Recognition Payment Technology (FRPT) is the new kid on the block, and it's making waves in countries like China, Russia, and some African nations.
This technology allows you to pay for items with a simple scan of your face; no fumbling for your credit card or smartphone required.
According to Professor Gary Mortimer from Queensland University of Technology (QUT), Australians might soon be welcoming this technology with open arms—or should we say, open faces?
Professor Mortimer's research suggests that Aussies are ready to adopt this new payment method, citing the millions of people already using it globally.
‘If it's growing at the size it is, potentially we'll start to see it coming to Australia,’ he said.
‘The technology is already here. We just need to put it into a situation where we can now pay for goods using our face or our palm.’
However, he noted that it will take time before it becomes as widely used as existing payment methods in Australia.
Before we all start paying with a smile, there are significant concerns to address, particularly around security, privacy, and data collection.
With the ever-present threat of scams and data breaches, Australians are understandably wary about the idea of their facial data being used for transactions.
Professor Mortimer explained that their research indicated the public would require ‘a clear range of information’ from retailers using the technology about how they handle personal data before they would consider using facial scanners for payments.
He said it's unlikely to be adopted universally when it arrives in Australia.
‘At this stage, Aussie shoppers tend to be more focused on doing it in a physical store first before moving online,’ the professor pointed out.
‘And they are also keen to adopt it, or were more encouraged to adopt it if they were given some incentives, bonus points, or a discount.’
However, the technology raises significant concerns about who would ultimately store your facial data.
Would it be your bank, your local supermarket, or a third party? Professor Mortimer emphasised that this crucial question must be addressed for the technology to succeed.
An investigation earlier this year found that using physical cash can aid in better financial management, as it helps you keep track of your spending and introduces a ‘pain’ point when handing over money.
‘When we make consumption decisions and purchases we tend to feel some pain and some happiness,’ University of Melbourne Senior Lecturer in Marketing Alex Belli explained.
‘You can feel pain because you are not sure if you can justify the purchase that you made or because you feel guilty about buying a certain product.’
Conversely, eliminating additional mental barriers to payment could lead to potential problems.
QUT's research revealed that some Australians are concerned they might overspend if they could make purchases simply by using facial recognition.
‘If I just look at the screen, I pay for my goods…so I'm losing track of what I've actually spent,’ Professor Mortimer said.
QUT's research indicated that Australians would need to recognise the convenience benefits of facial recognition payment technology for it to establish a presence in the country.
‘When we look at what retailers are doing, they're constantly looking to evolve that transaction and take that pain point out,’ Professor Mortimer noted.
Emerging technology expert Patrick Mutabazi outlined the following benefits of implementing such a payment method:
However, since Australians are already accustomed to the convenience of tap-and-go payments at supermarkets, convincing them to switch to facial scanning might be challenging unless they have their hands full or limited mobility.
Professor Mortimer suggested that the technology would likely be managed by a third party rather than banks or retailers.
Similar to how retailers use payment terminals from companies like Square or Tyro, FRPT machines could be supplied by a company that also handles data storage.
The biometric scanning used for payments worldwide is comparable to the facial recognition cameras used at airports for entry and exit.
As mentioned, facial recognition payment technology has already been implemented in countries such as China, Russia, and several African nations.
In China, the number of FRPT users surged from 61 million six years ago to over 760 million by 2022.
The global market for this technology was valued at $6.8 billion two years ago and is projected to exceed $8 billion by 2030.
Mastercard announced plans to introduce biometric payments two years ago, allowing users to ‘pay with a smile or a wave’.
‘The new technology ensures a fast and secure checkout experience whilst also empowering consumers to choose how they want to pay,’ it said.
‘The payments system can be integrated with loyalty programs and personalised recommendations to help consumers find products they might be interested in based on previous purchases.’
Mastercard collaborated with NEC, Payface, Aurus, PaybyFace, PopID, and Fujitsu Limited to implement its biometric scanning technology, starting with a trial in various supermarkets in Brazil.
In South America, consumers were able to upload their facial biometric data to the Payface app and use their face for grocery payments.
Additional trials were planned for the Middle East and Asia, with the technology making its debut in Europe earlier this year, beginning with Poland.
In Poland, the technology combined facial and iris scanning for payment verification, using PayEye’s eyePOS 3 terminals.
‘Poland was one of the first countries where contactless payments with Mastercard cards were introduced and we know that Polish consumers are leaders in adopting innovative technologies,’ Marta Życińska, Mastercard’s General Manager for Poland, said in a statement.
As the adoption of innovative payment technologies like facial recognition expands globally, it’s crucial for consumers to stay informed about the potential privacy implications.
While the convenience of paying with a smile or a wave is tempting, there are significant concerns about how personal data, particularly facial information, is handled.
This leads to important questions about privacy and consent, especially considering the legal aspects of facial data collection and its commercial use.
So, dear members, what are your thoughts on this futuristic payment method? Would you be comfortable paying with a smile, or do you prefer the tangible control of cash and cards?
Share your opinions in the comments below, and let's discuss the future of our transactions in this ever-evolving digital world.
However, what if I told you that the future of transactions might not involve wallets, cards, or even phones?
That's right, the next big thing in the world of payments could be paying with nothing but your face—a concept that's already smiling at 760 million users worldwide.
Facial Recognition Payment Technology (FRPT) is the new kid on the block, and it's making waves in countries like China, Russia, and some African nations.
This technology allows you to pay for items with a simple scan of your face; no fumbling for your credit card or smartphone required.
According to Professor Gary Mortimer from Queensland University of Technology (QUT), Australians might soon be welcoming this technology with open arms—or should we say, open faces?
Facial Recognition Payment Technology (FRPT) is gaining global traction and is expected to arrive in Australia soon. Credit: Pexels
Professor Mortimer's research suggests that Aussies are ready to adopt this new payment method, citing the millions of people already using it globally.
‘If it's growing at the size it is, potentially we'll start to see it coming to Australia,’ he said.
‘The technology is already here. We just need to put it into a situation where we can now pay for goods using our face or our palm.’
However, he noted that it will take time before it becomes as widely used as existing payment methods in Australia.
Before we all start paying with a smile, there are significant concerns to address, particularly around security, privacy, and data collection.
With the ever-present threat of scams and data breaches, Australians are understandably wary about the idea of their facial data being used for transactions.
Professor Mortimer explained that their research indicated the public would require ‘a clear range of information’ from retailers using the technology about how they handle personal data before they would consider using facial scanners for payments.
He said it's unlikely to be adopted universally when it arrives in Australia.
‘At this stage, Aussie shoppers tend to be more focused on doing it in a physical store first before moving online,’ the professor pointed out.
‘And they are also keen to adopt it, or were more encouraged to adopt it if they were given some incentives, bonus points, or a discount.’
However, the technology raises significant concerns about who would ultimately store your facial data.
Would it be your bank, your local supermarket, or a third party? Professor Mortimer emphasised that this crucial question must be addressed for the technology to succeed.
An investigation earlier this year found that using physical cash can aid in better financial management, as it helps you keep track of your spending and introduces a ‘pain’ point when handing over money.
‘When we make consumption decisions and purchases we tend to feel some pain and some happiness,’ University of Melbourne Senior Lecturer in Marketing Alex Belli explained.
‘You can feel pain because you are not sure if you can justify the purchase that you made or because you feel guilty about buying a certain product.’
Conversely, eliminating additional mental barriers to payment could lead to potential problems.
QUT's research revealed that some Australians are concerned they might overspend if they could make purchases simply by using facial recognition.
‘If I just look at the screen, I pay for my goods…so I'm losing track of what I've actually spent,’ Professor Mortimer said.
QUT's research indicated that Australians would need to recognise the convenience benefits of facial recognition payment technology for it to establish a presence in the country.
‘When we look at what retailers are doing, they're constantly looking to evolve that transaction and take that pain point out,’ Professor Mortimer noted.
Emerging technology expert Patrick Mutabazi outlined the following benefits of implementing such a payment method:
- Convenience: It removes the need to carry credit or debit cards, remember passwords, or have your smartphone or smartwatch with you constantly.
- Speed: Instead of fumbling for payment methods, you simply pose for the camera and complete the transaction quickly.
- Hygiene: With no physical contact required, FRPT helps avoid exposure to bacteria often found on cash.
- Potential Security: Supporters argue it could add an extra layer of security, as hackers would need a flawless replica of your face to access your payment information.
However, since Australians are already accustomed to the convenience of tap-and-go payments at supermarkets, convincing them to switch to facial scanning might be challenging unless they have their hands full or limited mobility.
Professor Mortimer suggested that the technology would likely be managed by a third party rather than banks or retailers.
Similar to how retailers use payment terminals from companies like Square or Tyro, FRPT machines could be supplied by a company that also handles data storage.
The biometric scanning used for payments worldwide is comparable to the facial recognition cameras used at airports for entry and exit.
As mentioned, facial recognition payment technology has already been implemented in countries such as China, Russia, and several African nations.
In China, the number of FRPT users surged from 61 million six years ago to over 760 million by 2022.
The global market for this technology was valued at $6.8 billion two years ago and is projected to exceed $8 billion by 2030.
Mastercard announced plans to introduce biometric payments two years ago, allowing users to ‘pay with a smile or a wave’.
‘The new technology ensures a fast and secure checkout experience whilst also empowering consumers to choose how they want to pay,’ it said.
‘The payments system can be integrated with loyalty programs and personalised recommendations to help consumers find products they might be interested in based on previous purchases.’
Mastercard collaborated with NEC, Payface, Aurus, PaybyFace, PopID, and Fujitsu Limited to implement its biometric scanning technology, starting with a trial in various supermarkets in Brazil.
In South America, consumers were able to upload their facial biometric data to the Payface app and use their face for grocery payments.
Additional trials were planned for the Middle East and Asia, with the technology making its debut in Europe earlier this year, beginning with Poland.
In Poland, the technology combined facial and iris scanning for payment verification, using PayEye’s eyePOS 3 terminals.
‘Poland was one of the first countries where contactless payments with Mastercard cards were introduced and we know that Polish consumers are leaders in adopting innovative technologies,’ Marta Życińska, Mastercard’s General Manager for Poland, said in a statement.
As the adoption of innovative payment technologies like facial recognition expands globally, it’s crucial for consumers to stay informed about the potential privacy implications.
While the convenience of paying with a smile or a wave is tempting, there are significant concerns about how personal data, particularly facial information, is handled.
This leads to important questions about privacy and consent, especially considering the legal aspects of facial data collection and its commercial use.
Share your opinions in the comments below, and let's discuss the future of our transactions in this ever-evolving digital world.
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