Facial scanning may soon become a payment method at Australian retailers, but shoppers say they want some assurances before jumping on the bandwagon. (Source: Instagram/LinkedIn)
Digital payments have become the preferred method of payment over cash for Australians, but there may soon be an entirely new way to pay for goods. Facial recognition payment technology (FPT) is growing in popularity around the world, and experts believe it’s only a matter of time before it makes its way to Australia.
Forget fumbling with your credit card, smartphone or watch at the till: technology allows you to pay with just a scan of your face. Professor Gary Mortimer from Queensland University of Technology (QUT) told Yahoo Finance that recent research has revealed Australians would be happy to embrace this new way of paying.
“If it continues to grow at the scale it is now and millions of people use it then there is the possibility it could be introduced in Australia,” he said.
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“The technology is already there, we just need to bring it to a situation where you can pay for products using your face or palm.”
But he said there was still a long way to go before it became as commonplace as established payment methods in Australia.
Security, Privacy and Data Collection
There’s already enough panic about scams, personal information hacks and data leaks, so it’s no wonder Australians have huge security and privacy concerns about the idea of using facial recognition as a payment method.
Prof Mortimer told Yahoo Finance that their research found that before people use face scanners to pay for anything, they would need “clear information” from each retailer using the technology about how they would handle their personal information.
He said even if it was introduced in Australia it was unlikely to be universally adopted.
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“At this stage, Australian shoppers tend to be focused on shopping in store first before moving online,” Mortimer said.
“And they’re eager to adopt it, too, and if they’re given some kind of incentive, bonus points or discount, they’re even more motivated to adopt it.”
But the technology raises a big question: who will ultimately store your facial data? Will it be your bank? Your local supermarket? Or a third party? Mortimer said that big question must be answered if the technology is to survive.
Australians may start spending more money
A study earlier this year found that using cash leads to better financial management, not only because it gives people more control over their money, but also because it removes the “pain” of handing over cash.
“When we make consumption decisions or purchases, we tend to feel pain or pleasure,” Alex Berri, senior lecturer in marketing at the University of Melbourne, told Yahoo Finance.
“You may feel distressed because you’re not sure if you can justify your purchases or you feel guilty about buying certain items.”
Conversely, if you remove any further psychological barriers to paying for something, it can be a dangerous path.
A QUT survey has found that some Australians worry that being able to pay with just their face will lead them to spend more than they earn.
“When you just look at a screen and pay for an item, you lose track of how much you’re actually spending,” Mortimer explained.
How does it work in Australia and what are the benefits?
QUT research suggests that FRPT will not take hold in Australia unless Australians understand the value of its convenience.
“When you look at what retailers are doing, they’re always evolving their transactions and trying to remove pain points,” he said.
According to emerging technology expert Patrick Mutabazi, the benefits of implementing such a payment method include:
Convenience: No need to carry credit or debit cards, remember passwords, or have a smartphone or smartwatch on you all the time.
Speed: No need to waste time digging out your regular payment method from your pocket or bag, as all you have to do is pose for the camera and you’re ready to go.
Hygiene: Because you don’t touch anything at FRPT, you can be sure there will be no contact with germs that may occur when exchanging cash.
Potential security: Proponents believe this could be another security buffer preventing hackers from using your payment details, as they would need a perfect clone of your face to make a payment.
But with the ease of tapping to pay at supermarket checkouts, for example, it may be difficult to get Australians to scan their faces unless their hands are full or their movements are restricted.
Mortimer said the technology would likely be provided by a third party, rather than a bank or retailer.
Just as retailers have payment terminals such as Square and Tyro, FRPT machines could also be provided by a company that stores all the data.
According to The Conversation, the biometric scans, which are already being used for payments around the world, are similar to the cameras installed in airports that scan faces as you enter and leave a country.
Where in the world did FRPT emerge?
Facial recognition payment technology has already been introduced in China, Russia and some African countries.
Six years ago, there were 61 million FRPT users in China alone, but by 2022, that number has skyrocketed to more than 760 million.
The global market for this type of technology was valued at $6.8 billion two years ago and is expected to grow to more than $8 billion by 2030.
Two years ago, Mastercard announced it would introduce biometric payments to its users, saying they would be able to “pay with just a smile or a wave.”
“This new technology ensures a fast and secure checkout experience, while giving consumers choice in how they pay,” the company said.
This is a facial and iris recognition payment system that was launched in Poland earlier this year. (Source: PayEye)
“Payment systems can be integrated with loyalty programs and personalized recommendations, making it easier for consumers to discover products that might interest them based on their past purchase history.”
Mastercard has partnered with NEC, Payface, Aurus, PaybyFace, PopID and Fujitsu Ltd to enable the biometric scanning technology, and has begun initial pilots in several supermarkets in Brazil.
The South American company’s consumers can now upload facial recognition data to the Payface app and use their face when paying for groceries.
Further trials are planned in the Middle East and Asia, and the technology arrived in Europe earlier this year, with Poland as the first trial country.
But thanks to PayEye’s eyePOS 3 terminal, the Eastern European country can now fuse both face and iris scans (eyes) for payment verification.
“Poland was one of the first countries to introduce contactless payments with Mastercard cards and we know that Polish consumers are pioneers when it comes to adopting innovative technology,” Marta Dzicinska, Mastercard’s general manager for Poland, said in a statement.
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