: Face, Iris, and Fingerprints
Biometric payments are taking off in 2024. Here’s what you need to know:
- 5 companies are leading the charge: PayEye, Banco PAN, BBVA, Garanti BBVA, and JPMorgan Chase
- Face recognition is the most popular method, used by 3 out of 5 companies
- Benefits include faster transactions and reduced fraud
- Challenges: user adoption, tech issues, and merchant skepticism
Quick comparison:
| Company | Biometric Method | Scale | Key Benefit |
|---|---|---|---|
| PayEye | Iris and face | Local | 4.21-second transactions |
| Banco PAN | Fingerprints | National | 1.9% yearly fraud reduction |
| BBVA | Face | Company-wide | Faster cafeteria lines |
| Garanti BBVA | Fingerprint (on card) | National | No transaction limits |
| JPMorgan Chase | Face | Nationwide rollout | Up to 90 seconds saved per transaction |
The biometric payment market could hit $2.5 trillion by 2024. Companies are betting big on this tech to make payments faster and safer.
Key takeaways:
- Start small, then scale up
- Partner with tech experts
- Educate users on privacy
- Prepare for adoption challenges
Biometric payments are here to stay. They’re making life easier for shoppers and helping businesses fight fraud. As more people use them, they’ll likely become a normal part of how we pay for things.
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How We Chose These Case Studies
We picked 5 case studies that show how biometric payments are changing things in 2024. Here’s what we looked for:
- Different industries
- Varied tech
- Real results
- Global reach
- Problem-solving
Here’s a quick look at our picks:
| Company | Industry | Biometric Type | Key Reason for Selection |
|---|---|---|---|
| PayEye | Fintech | Iris & Face | First to use iris for payments |
| Banco PAN | Banking | Fingerprint | Focused on reducing fraud |
| BBVA | Retail | Face | Testing in-store face payments |
| Garanti BBVA | Banking | Fingerprint | First biometric credit card in Türkiye |
| JPMorgan Chase | Finance | Face & Palm | Multi-channel biometric payments |
These cases show biometrics solving real problems:
- Faster checkouts
- Better fraud protection
- No need for cards or cash
People seem to like it too. Mastercard‘s test in Brazil found 76% of users would tell friends about face payments.
PayEye: Iris Recognition Payments
PayEye, a Polish fintech startup, has created a payment system that uses your eyes to pay. No cash, cards, or phones needed – just look and go.
How It Works
- The system scans your iris and face
- It turns this into a unique code
- The code links to your payment info
PayEye doesn’t store actual images. It’s fast too – payments take just 4.21 seconds.
Quick Facts
- Founded: 2019
- Location: Wrocław, Poland
- Transactions: Over 10,000
- Partners: 150+ retail spots
- Users: 2,000+
Overcoming Hurdles
PayEye faced some challenges:
| Challenge | Solution |
|---|---|
| Fast development | Used AWS |
| Meeting regulations | AWS security tools |
| Getting users | Simpler sign-up |
These moves paid off. By June 2020, PayEye was up and running in nearly 130 locations around Wrocław.
What They Learned
1. Speed is king
PayEye’s system is FAST:
| Payment Type | Seconds |
|---|---|
| PayEye | 4.21 |
| NFC | 21.95 |
| Cash | 40.4 |
2. Make it easy, people will use it
“It’s smoother shopping for customers.” – Daniel Jarząb, CEO
3. Cloud services help
“AWS is like having our own team. We saved on hiring.” – Łyczba, CTO
4. Keep improving
They use Amazon QuickSight to watch how things are working and make it better.
5. Look to the future
PayEye is working on new versions to grow faster and add online payments.
Banco PAN: Fingerprints to Reduce Fraud
Banco PAN, a mid-size Brazilian commercial bank, implemented a fingerprint system to boost security and cut fraud. Here’s how it went:
The Fingerprint System
Banco PAN’s system verifies customer identity, secures account access, and approves transactions. It’s part of a broader shift away from traditional passwords in banking.
Challenges and Wins
The bank faced some hurdles:
| Challenge | Solution |
|---|---|
| Meeting regulations | High-accuracy scanners |
| User adoption | Fast, easy-to-use system |
| System integration | Smooth IT implementation |
But the results? Pretty impressive:
- 1.9% yearly drop in fraud losses
- Faster approvals for ideal customers
- Better KYC and AML compliance
Key Takeaways
1. Biometrics > Passwords
Fingerprints proved more secure than traditional passwords.
2. Speed is King
Quick verification improved customer experience.
3. Always Improve
Banco PAN uses tools like Cymulate to keep upping their security game.
“Cymulate is easy to implement and use—all you need to do is click a few buttons, and you receive a lot of practical insights into how you can improve your security posture.” – Raphael Ferreira, Cybersecurity Manager
4. Fraud Prevention Pays Off
That 1.9% yearly reduction in fraud losses? It adds up.
5. Customers Approve
“Since we started using the solution [Fingerprint], we’ve implemented ID extraction across all possible channels and seen a huge impact, refusing fraudsters and assertively approving ideal customers.” – Calvin Seo, LinkedIn Post
Banco PAN’s fingerprint tech shows how biometrics can boost security AND make customers happier. Not bad for a bunch of fingerprints, right?
BBVA: Face Recognition in Stores
BBVA, a big Spanish bank, is shaking things up with face recognition payments in their cafeterias. Let’s dive in.
What’s the Deal?
BBVA’s new tech is all about speed. They want to cut down those annoying wait times when you’re just trying to grab lunch. They kicked this off at their Madrid HQ, and now thousands of employees use it every day.
How It Works
BBVA teamed up with Veridas, a Spanish startup, to make this happen. Here’s the lowdown:
- Snap a pic at a camera booth near checkout
- The system recognizes you and bills automatically
- No cash, no cards, no phones needed
They’ve even got a “Selfie & Go” app. Order your coffee ahead, and it’s billed when you show up. Pretty slick, right?
Bumps in the Road
| Problem | Fix |
|---|---|
| Getting people on board | Made camera booths super easy to use |
| Privacy worries | Let employees choose if they want in |
| Tech headaches | Brought in Veridas to smooth things out |
The Results? Over 1,000 employees jumped in during testing. Transactions got faster, and those long lines at checkout? Gone.
BBVA’s Takeaways
1. Invisible payments are the future
It’s like magic. Grab your food, sit down, and you’re done. No fumbling with wallets or cards.
2. Employees dig it
Thousands at the Madrid HQ use it regularly. That’s a good sign.
3. It’s not just for lunch
BBVA’s thinking bigger. This could work in all sorts of stores and restaurants.
4. Looking ahead
They’re dreaming up ways to charge you based on what you pick up, not just at checkout.
BBVA’s face recognition system is a sneak peek at how we might pay for stuff in the future. Imagine a world where payments just happen in the background, and you can focus on what really matters – like that sandwich you’re about to devour.
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Garanti BBVA: First Biometric Credit Card in Türkiye
Garanti BBVA just shook up Türkiye’s banking scene. How? By launching the country’s first biometric credit card.
What’s the Big Deal?
Garanti BBVA isn’t just any bank. They’re Türkiye’s second-largest, with 25 million customers and assets worth TL 2 trillion 202 billion (that’s USD 76 billion). They’ve got a track record of being first:
- First chip card in Türkiye
- First contactless credit card
- And now, the first biometric credit card
How Does It Work?
It’s simple:
- Tap the card on a contactless terminal
- Put your finger on the card’s sensor
- Done
No PIN. No limits. Works anywhere in Türkiye with a standard contactless terminal.
Challenges and Wins
Garanti BBVA faced some hurdles:
| Challenge | Solution | Result |
|---|---|---|
| Getting people to use it | Special setup kit | Sales took off |
| Security worries | Fingerprint auth | No more transaction limits |
| Explaining it to people | TV and social media blitz | More interest and awareness |
They timed it right, too. In 2023, contactless payments in Türkiye shot up 151%. There are now over 1.6 million contactless terminals across the country.
What They Learned
- New tech brings in customers
- Make it easy, people will use it
- Clear instructions matter
- Team up with big names (like Mastercard) for a boost
“Biometrics make payments safer, faster, and easier. It’s a win-win.” – Avşar Gürdal, Mastercard’s big cheese in Türkiye and Azerbaijan
Bottom line? Garanti BBVA showed how banks can mix security and ease-of-use to stay ahead in the payment game.
JPMorgan Chase: Face-Pay Tech Across the US
JPMorgan Chase is going all-in on biometric payments. They’ve partnered with PopID to bring face-pay technology to stores nationwide.
The Big Picture
Chase isn’t just testing the waters. They’re making a splash:
- PopID partnership for face-pay tech
- Target: fast-food joints, event spaces, and grocery stores
- Goal: widespread rollout by early 2025
Why? To speed up checkouts and boost sales.
How It Works
1. Take a selfie
2. PopID stores it in the cloud
3. Scan your face to pay
No phone. No card. Just your face.
Challenges and Wins
Chase hit some snags:
| Issue | Fix | Outcome |
|---|---|---|
| Customer doubts | Test runs | More users |
| Merchant skepticism | Showing perks | More businesses join |
| Tech hiccups | Teaming up (e.g., Whataburger) | Smoother launch |
The payoff?
- Up to 90 seconds saved per transaction
- 4% bigger tickets
Chase’s Takeaways
1. Start small: From cafeteria tests to Formula 1 events.
2. Team up: PopID and merchant partnerships smoothed the way.
3. Highlight perks: Speed for customers, sales for merchants.
4. Face fears: Clear opt-in rules address privacy worries.
“We offer something that is hard to match – the stability, scale and trust of a world-class bank combined with the technology and agility of a fintech.” – Jean-Marc Thienpont, Managing Director for Omnichannel and Biometric Solutions at J.P. Morgan.
Chase is betting big on biometrics. With their massive reach (handling nearly $10 trillion in daily payments) and PopID’s tech, they’re set to change how we pay – face by face.
Comparing the Case Studies
Let’s break down how different companies are using biometric payments.
Tech Choices
Each company went for a different biometric method:
| Company | Biometric Method |
|---|---|
| PayEye | Iris and face |
| Banco PAN | Fingerprints |
| BBVA | Face |
| Garanti BBVA | Fingerprint (on card) |
| JPMorgan Chase | Face |
Face recognition is the top pick, with 3 out of 5 companies using it.
How Big Are These Projects?
- PayEye and Banco PAN: Focused on specific areas or customer groups
- BBVA and Garanti BBVA: Went country-wide
- JPMorgan Chase: Aiming for U.S.-wide launch by 2025
Bumps in the Road
All companies hit some snags:
- Getting customers on board
- Tech hiccups
- Merchants being skeptical (JPMorgan Chase)
What Worked?
We don’t have all the numbers, but:
- JPMorgan Chase: Saved up to 90 seconds per transaction, 4% bigger purchases
- Banco PAN: Less fraud (but no exact figures)
What Did They Learn?
Four main takeaways:
- Start small, grow big
- Team up with tech experts
- Teach users
- Talk about privacy upfront
What’s Next?
These cases show biometrics are on the rise. Dennis Gamiello from Mastercard says:
“Consumers are embracing new ways to pay… there’s a broad appreciation for the enhanced security biometrics brings.”
This fits with the bigger picture: biometric payments could hit $2.5 trillion by 2024 (Juniper Research).
Bottom line: These five companies are all-in on biometrics for payments. Their stories show both the cool stuff and the tough parts of this tech.
Main Findings
Our analysis of five biometric payment case studies reveals key insights for companies looking to implement this tech:
1. Pick the right biometric method
Face recognition came out on top, with 3 out of 5 companies using it. This matches what consumers want – many prefer using their face, iris, or voice to confirm their identity.
| Company | Biometric Method |
|---|---|
| PayEye | Iris and face |
| Banco PAN | Fingerprints |
| BBVA | Face |
| Garanti BBVA | Fingerprint (on card) |
| JPMorgan Chase | Face |
2. Start small, then grow
Companies like PayEye and Banco PAN focused on specific areas or customer groups before expanding. This lets them test and refine the system before going big.
3. Team up with tech experts
All five companies partnered with tech firms to set up their biometric payment systems. This brings in needed know-how and helps tackle technical issues.
4. Teach users and tackle privacy worries
User education and privacy were big themes across all case studies. Companies need to be clear about how they collect, use, and protect biometric data.
JPMorgan Chase’s Dennis Gamiello says:
“Consumers are embracing new ways to pay… there’s a broad appreciation for the enhanced security biometrics brings.”
5. Be ready for bumps in the road
Common challenges included:
- Getting customers on board
- Technical hiccups
- Merchant skepticism (especially for JPMorgan Chase)
6. Expect better efficiency and security
While not all companies shared numbers, the benefits were clear:
- JPMorgan Chase cut transaction times by up to 90 seconds
- Banco PAN saw less fraud (though exact figures weren’t given)
7. Look ahead
Biometric payments are set to boom. Juniper Research thinks the market could hit $2.5 trillion by 2024. Companies should get ready by:
- Setting up strong security for biometric data
- Offering other ways to authenticate for inclusivity
- Staying on top of legal and ethical issues around biometric data use
8. Think about using multiple biometrics
Some companies, like PayEye, already use more than one biometric trait (iris and face) for better security. This trend will likely continue as the tech evolves.
9. Keep an eye on new tech
Watch out for new developments, such as:
- Behavioral biometrics for ongoing authentication
- Biometric sensors in payment cards
- AI and machine learning advances for better accuracy
Conclusion
Biometric payments are changing the game in 2024. Our case studies reveal companies using face, iris, and fingerprint tech for faster, safer transactions.
Key takeaways:
- Face recognition leads the pack (3 out of 5 companies)
- Start small, then scale up
- Tech experts are crucial
- User privacy education matters
The market’s booming. Juniper Research predicts biometric payments could hit $2.5 trillion by 2024.
But it’s not all smooth sailing. Challenges include:
- Getting customers on board
- Fixing tech hiccups
- Convincing stores to adopt
Despite these hurdles, the benefits are clear:
| Company | Benefit |
|---|---|
| JPMorgan Chase | 90-second transaction time cut |
| Banco PAN | Fraud reduction (exact figures undisclosed) |
Moving forward, companies should:
- Prioritize biometric data security
- Offer alternative payment methods
- Stay on top of data laws
We might see more multi-biometric systems (like PayEye’s iris-face combo) and behavior-based checks in the future.
Biometric payments are here to stay. They’re making transactions easier and safer for consumers while helping businesses fight fraud. As adoption grows, this tech is set to become a standard part of our payment landscape.
