Digital wallet to support iris biometric retail payments

When it comes to money, transactions, and finance, safety is always a top priority. To ensure that no fraudulent activity occurs, we have implemented a variety of security procedures. Bank representatives, for example, request biographical information and passcodes. A user’s identity must also be verified by signatures and PINs.

However, as technology advances, the banking and commerce sectors are fast digitising. They’re making banking services more accessible and convenient than ever before. Many individuals, however, remain sceptical about the security side of it, since we have seen numerous examples of fraud using digital payments.

Biometric authentication has emerged as a possible solution to this problem. In this post, we’ll look at what biometric payment technology is and how it can change the digital payment landscape. But first, let’s go through the basics of biometrics.

Digital Wallets

There has been a remarkable increase in the worldwide online commerce and payment business since smartphones achieved dominion over the world and became an internet access control tool. A digital wallet is an online financial service platform that promotes “cashless” transactions.

The word “digital wallet” refers to an Digital fintech software solution such as a mobile application or any other online money transfer channel; however, the terms “mobile wallet” and “e-wallet” are not synonymous. The term “mobile wallet” refers to the use of a digital wallet on a smartphone or mobile device, whereas “e-wallet” refers to the use of a digital wallet on a browser or desktop environment.

In addition, digital wallets can perform a variety of financial services, including peer-to-peer (P2P) payments, account balance inquiries, and support for loyalty programs (coupons, gift vouchers, or prizes) as well as other online payment activities.

What is Biometric Payment and How Does it Work?

Biometric payment is a point-of-sale (POS) technology that uses physical attributes to identify the user and allow the withdrawal of monies from a bank account. One of the latest biometric retail payment methods is iris payment, which is based on eye scanning.

The system frequently employs two-factor authentication, in which an eye scan replaces a card swipe and the user writes in a personal identification number (PIN) as usual.

Let us look at the biometric authentication methods that are being explored and used:

• Iris Recognition
• Retina Recognition
• Face Recognition
• DNA Matching
• Signature Recognition
• Voice Recognition
• Vein Patterns
• Fingerprint Scanning

Here’s How One Biometric-based Payment System Works

• By submitting acceptable identity and bank account details at a store kiosk, the consumer registers for a biometric payment card program.
• The shopper uses the kiosk’s iris scan scanner to scan their eyes.
• The finger scan reader at the store encrypts several point-to-point iris measurements and saves the customer’s biometric data and financial information in a centralised database.
• At the POS register, the shopper now has the option of selecting biometric payment. They scan their iris at the checkout register using the store’s computerised scanner and input their PIN code if they choose biometric payment.
• When the data from the fresh scan is compared to the encrypted data in the database, the electronic reader allows or rejects payment authentication. The monies are electronically sent from the shopper’s account to the merchant if the transaction is accepted.

Biometric Technology is Being Adopted by Big Names

It is visible that Open banking changing the payments of global market Customers are no longer satisfied with merely PINS and passwords in the face of rising fraud cases. That is why major companies such as Intel and Microsoft are developing biometric authentication methods for new goods.

SSO (single sign-on) with biometrics is a sophisticated password management technology. It safeguards data from illegal access. Microsoft and Intel, for example, are promoting and assisting banks in entering the biometric space for all mobile banking services.

Multifunction Authentication

Customers who just have passwords and PINs are extremely vulnerable to identity theft. This is why many businesses have begun to use multi-factor authentication (MFA), which combines fingerprint technology with facial recognition, retina scanning, or voice recognition. MFA is extremely safe because it makes it impossible for hackers to gain access to a customer’s account. This one-of-a-kind security solution blends what a user knows with who he or she is.

Before manual logins become obsolete, banks will begin matching PINs and passwords with biometric identification in mobile banking for two-factor authentication.

Simplified and Secure Online Banking

When Apple introduced fingerprint sensors to its devices, it generated quite a stir. This technology was afterward adopted by a large number of other companies. Financial services companies have also jumped on board to make use of this Top digital payment trends, developing biometric login for their banking apps.

Almost all of the big banks have embraced fingerprint login in addition to supporting the other modalities. Another technology that financial service companies have adopted for user login is Samsung’s iris scanning.

Apple also developed Face ID, which is a facial recognition system. It’s an infrared facial recognition system used by institutions such as OCBC and HSBC in Singapore.

Not only are banks imitating Apple’s Face ID functionality, but so are a slew of other smartphone manufacturers. As a result, it’s safe to predict that in the coming years, a large number of people will log into their bank accounts simply by looking at their phones.

Future of Payments

Card payments can benefit from biometric technologies as well. Card payment methods currently include swiping a card at a terminal, which is gradually becoming outdated in many regions of the world.

Chip cards that facilitate NFC transactions, in which customers must tap their card on the terminal, are also available. In comparison to the other card payment options described above, this approach is quite convenient and quick. However, because there is no requirement for a PIN or signature, it poses some security problems.

This is when biometric payment cards come in handy. These cards provide biometric security and allow for tap-and-go payments. While making a transaction, all a cardholder needs to do is register their finger on the card’s sensor.

Big firms like Mastercard and Visa are already working with their financial service partners on this technology in preparation for large-scale rollouts. It means that in a short time, people all around the world will be able to make secure, fast, and convenient payments through their cell phones

The following are some of the benefits of biometric technology:

• end-user security; more convenient, faster payment experience;
• no need for end-users to carry cash, checks, or credit cards; and
• cheaper cost per transaction for merchants when compared to credit or debit cards

Of course, there are obstacles to overcome with any new technological advancement.

Conclusion

Biometrics have revolutionised the way we think about security. Users will continue to benefit from top-notch security thanks to its vast range of applications in the financial and banking sectors.

Furthermore, biometric technology is always being improved in order to give even more secure solutions. Only time will tell if biometrics for digital payments will be a success.