Mastercard has created a new technology that will allow shoppers to make transactions using their faces or fingerprints. This is an efficient way for people who don’t want any cards, checks or cash in hand.
Mastercard is revolutionizing the way people pay for things with their new tech program, launched on Tuesday and pitched to retailers who want to use biometrics during the payment process. For example, users can pay via a fingerprint scanner or facial recognition system when checking out at a favorite store.
Currently, the tech program is used in five stores in Sao Paulo, Brazil. However, Mastercard expects to extend its partnerships to more countries and regions across the globe.
In company-conducted research, Mastercard cyber and intelligence president Ajay Bhalla said consumers love biometrics. They also like a system that allows them to pay faster, like opening a phone.
With the number of people using facial recognition technology forecasted to increase over time, technological innovations like Mastercard’s become a trend. Juniper Research predicts that by 2025, users of facial recognition technology will reach 1.4 billion, twice the number in the 2020 data.
Sign up with Mastercard
To get started, users need to take their biometrics like face and fingerprints so it will be uploaded into the system. This process can be done thru phone or payment terminals. When the biometrics are already recorded, users may input a credit card which is then connected with the registered biometric data of the user in the Mastercard app.
The system is the same as the initiatives taken by Amazon in the US.
Mastercard looks to bring its technology to the Middle East, Europe, Asia and the United States. The expansion will be possible as soon as logistics permits and proposals are accepted by target stores. Bhalla added that the goal is to make their piece of innovation global.
Privacy issue, a challenge?
The use of biometrics in credit card transactions has many people on edge. They fear that their personal information could be compromised, including sensitive data which are tied to these technologies for authentication purposes. There is also growing uncertainties regarding the place where data is stored and how secure it is.
Amid the uncertainty, Mastercard has assured customers that their data is encrypted and not susceptible to breaches. In addition, upon enrolling, the biometrics will be replaced by a “token,” a random sequence of alphanumeric numbers that will be directly linked to the user’s card.
Mastercard is working hard to assure maximum privacy of all registered biometrics and card details.
To up the potency of the program’s ecosystem, they’re partnering with other companies like NEC, Fujitsu, Payface, Aurus, PaybyFace, and PopID. The partnerships will allow MasterCard to perfect its technology while creating linkages for marketing programs across regions around the world.
Opinions expressed by US Insider contributors are their own.