Underpinning that is the emerging need for a digital identity layer. With the news that Google Wallet on Thursday (Sept. 12) unveiled a suite of new features — among them the ability to create digital IDs for use at select TSA checkpoints — financial institutions (FIs) and payment solution providers have new ways to leverage biometric authentication, addressing identity authentication pain points.

With transactions growing in complexity, volume and value, there is a heightened demand for security, efficiency and seamless experiences. In both consumer and B2B landscapes, digital payments are booming, but this growth is accompanied by rising fraud threats and the complexities of identity verification.

Biometrics, or the use of unique biological characteristics such as fingerprints, facial recognition or voice patterns for identification and authentication, is emerging as a powerful solution to address several of these pain points. This technology offers not just enhanced security but also the potential to streamline payment processes, making it particularly valuable where stakes are high and transactions more complex.

Read more: 3 Big Ideas From PYMNTS Intelligence’s Digital Wallets UK Report

Biometrics: Revolutionizing Security, Fraud Prevention and Efficiency in Payments

As the digital economy grows, so does the need for secure and reliable identity verification. In many cases, payment fraud occurs not because of vulnerabilities in the payment process itself but because of weaknesses in identity verification.

By integrating biometrics into digital identity verification, businesses can significantly reduce the risk of account takeovers and synthetic identity fraud. Biometric data provides a unique, immutable marker that ties the individual to the account, making it more difficult for fraudsters to create fake identities or gain unauthorized access.

“We’re excited about the potential of future technologies like biometrics and behavioral analytics in further streamlining authentication while enhancing security,” Brad Rosenfeld, chief marketing officer at Prove Identity, told PYMNTS, adding that “markets like Brazil and India are rapidly embracing mobile-first solutions and are fully on board with digital transformation, with everyone looking for new ways to work with financial services.”

According to “Digital Wallets Beyond Financial Transactions: A Global Perspective,” a PYMNTS Intelligence and Google Wallet collaboration, 70% of consumers across Brazil, France, Germany, the U.K. and the U.S. use digital wallets.

“Digital wallets are on a hockey-stick trajectory right now,” Chuck Fagan, president and CEO of Velera — the newly rebranded PSCU/Co-op Solutions — told PYMNTS.

As governments and regulatory bodies increase pressure on businesses to comply with stricter know your customer (KYC) and anti-money laundering (AML) standards, biometric verification is well positioned to become a cornerstone of compliance efforts in the payments space — and one of the more interesting opportunity areas could be across the B2B landscape.

See also: Digital Wallets Beyond Financial Transactions: A Global Perspective

Biometrics: Revolutionizing Security, Fraud Prevention and Efficiency in B2B Payments 

While biometric authentication is already making waves in consumer payments — think smartphone-based facial recognition or fingerprint authentication for mobile wallets — the B2B sector is uniquely positioned to benefit from this technology’s potential.

One of the key pain points in B2B transactions is the cumbersome process of verifying identities. In industries like supply chain management, manufacturing and professional services, ensuring that the correct parties are authorized to approve or complete transactions often requires time-consuming manual processes. The introduction of digital identity verification using biometrics could help to reduce these delays.

For instance, integrating biometric solutions with enterprise resource planning (ERP) and treasury management systems could enable real-time identity verification of employees, suppliers and vendors. This would accelerate approval processes and reduce the likelihood of human error or fraud. Whether it’s approving a payment, signing a contract or accessing sensitive financial data, biometric verification can streamline workflows.

In the future, we may see even more advanced forms of biometric authentication, such as behavioral biometrics, which monitor user behaviors like typing patterns or mouse movements. These technologies can provide additional layers of security by continuously authenticating users as they interact with payment systems, rather than relying on one-time verifications.

Read more: 5 Emerging Security Imperatives for Digital Wallets 

Biometrics also has the potential to enable seamless cross-border payments by simplifying identity verification across different jurisdictions. This could be particularly beneficial in the B2B landscape, where international transactions often involve navigating a maze of different regulations and compliance requirements.

Interoperability is another fundamental aspect of biometric adoption.

“When it comes to being able to digitize and save these IDs, and of course to use them, the first and most critical thing to establish are sound and complete standards,” Alan Stapelberg, group product manager at Google Wallet, told PYMNTS. As he explained, identity is a global use case, and digital IDs must be able to function across borders just as physical IDs do today. This requires collaboration among various stakeholders to build solutions that are universally accessible and interoperable.

Still, recent PYMNTS Intelligence data shows that while some people are using digital wallets to store IDs, not many (about 8%) are actively using them. And separately, the integration of biometric authentication into existing payment systems requires significant investment in technology infrastructure. Small- to medium-sized businesses, in particular, may find it difficult to justify the cost of upgrading their systems, despite the long-term benefits that biometrics can offer.

The post What Payments Professionals Should Know About Biometric B2B Payments appeared first on PYMNTS.com.

This solution uses facial recognition and liveliness checks to verify account users in cases in which the bank’s machine learning (ML) algorithms have detected potentially fraudulent transactions, Airtel Payments Bank said in a Tuesday (Aug. 20) press release emailed to PYMNTS.

Face Match first calculates a threat score based on user behavior, transaction pattern and location, historical data, device and mobile app-based signals, according to the release.

If a user exceeds this threat score, the account is secured to prevent fraudulent transactions and the user is notified on their mobile number that they must complete a quick verification to proceed with a transaction, the release said.

A link in the notification takes the user to the Face Match section of the Airtel app, where they can take a selfie that is then compared to a photo from their onboarding process, per the release.

If there is a successful match, the user can continue with their transactions; if there isn’t, they must visit a banking location for biometric verification, the release said.

Biometric authentication tools have been embraced in the United States, according to the PYMNTS Intelligence and AWS collaboration, “Tracking the Digital Payments Takeover: Biometric Authentication in the Age of Mobile.”

More than half of U.S. consumers who completed online purchases used biometric authentication to validate their transactions, with 28% of these consumers using facial recognition and 49% using fingerprint scans.

That report also found that about 15% of U.S. consumers have not used biometric authentication methods but are interested in doing so, while 34% have not used those methods and are not interest in doing so.

In another deployment of biometric technology, IDEX Biometrics said Aug. 14 that TaluCard plans to launch a physical biometric payment card and complementary app designed to provide an accessible and secure payment solution for users with visual impairments.

Slated for introduction in the United Kingdom in late 2024, the payment card features fingerprint authentication, tactile guidance markers that help users locate the fingerprint sensor, and the ability to make contactless transactions without PINs or signatures.

The post Airtel Payments Bank Adds Biometric Verification Solution to Protect Accounts appeared first on PYMNTS.com.

That’s Michael Will, head of Bavaria’s data regulator, speaking to The Wall Street Journal (WSJ) Sunday (Aug. 18) about concerns over Worldcoin’s iris-scanning technology. 

As that report noted, Germany is far from alone in its concern, with more than a dozen jurisdictions having either suspended Worldcoin’s operations or launched probes into the company, founded by OpenAI CEO Sam Altman.

As PYMNTS wrote last year, the Worldcoin project’s stated goal is to capture participants’ biometrics with its proprietary Orb to provide them with a “proof of personhood” — as well as the company’s digital currency — something that the company said “will become more important as increasingly powerful AI [artificial intelligence] models become available.” 

In other words — and as the WSJ report pointed out — it’s a case of Altman using the technology from one of his companies to protect people from the potential downside of his other firm.

So far, the project has drawn a mix of both support — 6 million people have signed up — and skepticism. For example, regulators in Hong Kong raided the company’s offices there in May, while Spain and Portugal have both blocked its use. The Bavarian regulator is expected to release a decision in its investigation soon.

Their concerns are multifaceted, the report said. How does the company train its algorithms? What steps does it take to avoid scanning children? What does it do with user data? And several authorities have accused Worldcoin of telling operators of its Orb scanning device to encourage users to turn over iris images. 

According to the report, privacy advocates say these images could be used to construct a global biometric database with little oversight.

Damien Kieran, Worldcoin’s chief privacy officer, told WSJ any venture like this one was bound to attract scrutiny, and the project was working with regulators to address concerns. 

For now, WorldCoin has paused its image-sharing option for users while it develops a new process, he said, and its training materials don’t ask operators to induce users to share biometric data, said Kieran.

“We’ve built a technology that by default is privacy-enhancing,” Kieran said in an interview. “We don’t collect data to harvest it. We don’t sell data. In fact, we couldn’t sell it, because we don’t know who the data belongs to.”

The post Worldcoin’s Iris-Scanning Tech Faces Global Pushback appeared first on PYMNTS.com.

Developed in collaboration with IDEX Biometrics and an unnamed London-based issuer, the card is expected to be introduced in the United Kingdom in late 2024, according to a Wednesday (Aug. 14) press release.

The TaluCard payment card features fingerprint authentication, tactile guidance markers that help users locate the fingerprint sensor, and the ability to make contactless transactions without PINs or signatures, the release said.

The TaluCard app that supports the card includes proprietary access technology offering discreet audio feedback that helps visually impaired users verify transaction details securely and privately, according to the release.

Together, these solutions aim to serve the 2.3 million people in the U.K. who have some form of visual impairment, per the release.

TaluCard is compliant with the U.K. Consumer Duty and Accessibility laws and the European Accessibility Act, which is set to take effect in 2025, according to the release.

“We share the conviction with TaluCard that digital and financial inclusion is critical for economic growth and should be a key priority for banks and FinTechs,” IDEX Biometrics Chief Commercial Officer Catharina Eklof said in the release.

Steve Tyler, director of assistive technology at Leonard Cheshire and former head of strategy at the Royal National Institute of Blind People, said in the release: “TaluCard is a groundbreaking solution that instantly removes some of the challenges of payment experiences; through the simple expedient of seamless biometric identification, there is no need to be concerned about misuse of a card or handling unusual or inaccessible point-of-sale solutions.”

Biometric authentication continues to gain prominence due to the convenience and security it offers, according to the PYMNTS Intelligence report “Tracking the Digital Payments Takeover: Biometric Authentication in the Age of Mobile.”

Twenty-eight percent of consumers said fingerprint scans or facial recognition are their preferred authentication method, with younger generations using biometrics for convenience and older consumers using the technology to enhance security, the report found.

The post TaluCard Unveils Biometric Payment Card, App for Visually Impaired Consumers appeared first on PYMNTS.com.

J.P. Morgan Payments expanded its partnership with consumer authentication firm PopID.

The collaboration offers in-store biometric payments to merchants in pilot programs across the United States, allowing shoppers to use a “pay-by-face” system without relying on their phones or credit cards, according to a Tuesday (Aug. 6) press release.

“Biometric loyalty program check-in and payment provides a swift ordering and checkout experience for merchants and customers alike,” the release said. “PopID research has shown the platform decreases ordering and checkout times by up to 90 seconds per transaction and can increase ticket size by 4%.”

Among the merchants using the program is fast food chain Whataburger, which is already accepting biometric payments through PopID’s solution and now plans to extend biometric payments with J.P. Morgan Payments’ processing, per the release.

“Whataburger has already seen a positive impact with faster checkout times and increased loyalty engagement at the counter and on self-ordering kiosks,” the release said. “After registering for biometric loyalty and payment in the Whataburger mobile app, guests no longer need to pull out their mobile phones and scan the QR code to check into the loyalty program or further authenticate payment, which is done through a biometric scan.”

J.P. Morgan began testing biometric payments at retailers last year. Efforts like this come in response to consumer demand for biometric authentication offerings.

The PYMNTS Intelligence report “Consumer Authentication Preferences for Online Banking and Transactions” found that close to half of all consumers had used biometrics — fingerprint, face or voice recognition — to gain access to online accounts and payment methods in the month before being surveyed.

Fifty-two percent of that group said biometrics was their preferred authentication method. In addition, the study found that 31% of consumers see biometrics as the most secure method for authentication, while 9% of consumers said the same about passwords. The data also showed that respondents saw biometrics as somewhat more convenient, faster and easier to use than passwords.

Another PYMNTS Intelligence report “Tracking the Digital Payments Takeover: Biometric Authentication in the Age of Mobile” showed that two-thirds of consumers use or show interest in biometric identification methods. Eighty percent of consumers using biometric authentication said they use the technology to make purchases with their mobile devices.

The post J.P. Morgan Expands Biometric Payments Pact With PopID appeared first on PYMNTS.com.

Per a report Thursday (July 25) from the website Biometric Update, the collaboration is designed to use biometrics to bolster security measures and reduce the risk of fraud and unauthorized transactions.

As the report notes, PayEye’s offerings include the eyePOS payment terminal, which lets users carry out transactions via a combination of iris and facial biometrics.

“Putting together our potentials will help us go down in history as innovators setting new trends in the global payment markets, from which — thanks to even greater convenience and security in the payment process — our customers stand to benefit the most,” Artur Żymańczyk, Worldline’s country manager for Poland, said in the report.

As noted here earlier this year, leveraging biometric information for authentication represents one of the latest frontiers in the continuing evolution of payments.

“Biometric authentication, while it exists for other aspects of our lives, is not a huge thing at this stage for payments — but as far as payments goes, it is the future,” Marc Hopkins, vice president at E-Complish, told PYMNTS.

And although biometric authentication for payments isn’t yet ubiquitous, that report argues, the technology is poised to reshape how consumers make payments.

“The ability for a customer to go buy a cup of coffee and not have to have to whip out their phone or their wallet, to simply just place their finger and scan to process a payment is ideal,” Hopkins said. “We currently are pretty much a cashless society, so you can think of bio payments as making us a cardless and eventually phoneless society.”

And unlike stolen cards or compromised passwords, biometric data is inherently linked to an individual and much harder to replicate, meaning that the adoption of biometric payments is expected to be swift, as consumers demand both convenience and heightened security.

“Companies are spending thousands, millions, collectively billions on fraud prevention. Biometric payments can help reduce that cost,” said Hopkins.

Worldline last week formed a partnership with intelligent vending machine company Selfly Store, working with payment expert Antenor to integrate a contactless payment solution with Selfly’s machines, which are designed to provide an autonomous meal/snack solution for venues such as hotels and offices.

“Crafted by payment expert Antenor on Worldline’s full payment offer, the solution incorporates a series of unattended terminals, Worldline’s omni-channel acceptance platform and Worldline’s international acquiring solution,” the companies said in a news release.

The post Worldline and PayEye Team on Biometric Payments appeared first on PYMNTS.com.

The company is using the technology to spot unauthorized visitors and keep them from entering the office, CNBC reported Wednesday (June 26).

“For many years our security team has been testing and implementing new systems and protections to help keep our people and spaces as safe as possible,” a Google spokesperson said in the report.

In the company’s test of facial recognition technology includes interior security cameras that collect facial data and compare it to images from employee badges to spot any unauthorized visitors, according to the report.

In addition, Google’s Security and Resilience Services (GSRS) team will use the data to spot people who are known to pose a security risk, the report said.

People entering the building are not allowed to opt out of the facial screening, per the report. The data is not stored.

The test of this technology comes at a time when Google is adding artificial intelligence (AI) across its product line, and when facial recognition technology has been raising concerns about privacy, according to the report.

Other tech companies have also faced concerns centered on this technology. Amazon, Microsoft and IBM have placed restrictions on the sale of their facial recognition technology to police, and Amazon was once questioned by U.S. senators about its use of AI-equipped cameras in its delivery vans, the report said.

Biometrics like facial recognition offer potential benefits such as enhanced security and streamlined processes but also face complexities and concerns around privacy, data protection and implementation hurdles, PYMNTS reported in April.

Amid concerns about potential societal harms, Big Tech companies are increasingly enforcing guardrails around facial recognition and AI systems.

On the other hand, PYMNTS Intelligence has found that people are getting more used to logging into their favorite apps on their smartphones using facial recognition or their fingerprints.

Nearly half of online shoppers in the U.S. use some type of biometric authentication method for purchasing online, according to “Tracking the Digital Payments Takeover: Biometric Authentication in the Age of Mobile,” a PYMNTS Intelligence and AWS collaboration.

The post Google Testing Facial Recognition-Based Security System for Offices appeared first on PYMNTS.com.

The science powering that tool, iProov’s Dynamic Liveness Solution, is the first to receive the new global certification on face biometric identity verification from industry association the FIDO Alliance, iProov said in a Thursday (June 6) news release.

“This program is the premier certification to assess the performance and usability of remote identity verification systems based on facial biometrics,” the company said in the release.

“In a rigorous process conducted by Ingenium Biometrics, a FIDO face verification accredited lab, which consisted of no less than 10,000 tests, iProov’s Dynamic Liveness achieved a flawless success record with no attacks passing the system.”

Amid an explosion of digital identity verification — driven by the worldwide digital transformation — FIDO is working to help organizations to make informed decisions when selecting biometric identity verification solutions and ensure access to digital services for everyone, iProov said.

“For the first time, governments and enterprises worldwide can rely on an industry-recognized, large-scale biometric performance standard and certification program,” said Andrew Bud, founder and CEO of iProov.

“Finally, they can specify and procure biometrics with presentation attack liveness defenses with confidence in a third-party benchmark.”

As PYMNTS wrote last month, one of the newest frontiers in the continuing evolution of payments is using biometric information for authentication, where someone’s very characteristics — fingerprints, facial features or iris patterns — are used to authorize transactions securely and safely.

“Biometric authentication, while it exists for other aspects of our lives, is not a huge thing at this stage for payments — but as far as payments goes, it is the future,” Marc Hopkins, vice president at E-Complish, said in an interview with PYMNTS.

And even though biometric authentication for payments isn’t yet omnipresent, the technology is set to reshape how consumers interact with the payment ecosystem as well as the daily transactions that make up their everyday lives.

“The ability for a customer to go buy a cup of coffee and not have to have to whip out their phone or their wallet, to simply just place their finger and scan to process a payment is ideal,” Hopkins said.

“We currently are pretty much a cashless society, so you can think of bio payments as making us a cardless and eventually phoneless society,” he said.

The post iProov Earns First FIDO Certification for Face Biometric Verification appeared first on PYMNTS.com.

Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) said in a Wednesday (May 22) press release that it has directed the organization to stop scanning and collecting iris and face images of members of the public.

The PCPD found that the Worldcoin project violated Hong Kong’s Personal Data (Privacy) Ordinance (PDPO), according to the release.

Reached by PYMNTS, Worldcoin Foundation provided an emailed statement saying that it is “disappointed” by the PCPD’s views.

“Worldcoin operates lawfully and is designed to be fully compliant with all laws and regulations governing data collection and use, including the Personal Data (Privacy) Ordinance of Hong Kong, among many other similar statutes across other markets,” the statement said.

“In an effort to prepare humanity for the age of AI, the Foundation continues to raise the privacy bar through data minimization, user control over data and advanced technology such as personal custody, iris code deletion, and secure multi-party computation,” it added. “Unfortunately, the authorities in Hong Kong overlooked these aspects in their evaluation of the humanness verification process.”

During the PCDP’s investigation, it determined that during Worldcoin’s operation in Hong Kong, more than 8,000 individuals had their faces and irises scanned for verification, the release said. These people were told that they would then be able to receive free Worldcoin tokens, a cryptocurrency, at regular intervals.

In its press release, the PCPD invited members of the public to inform the office if they see Worldcoin operating its iris scanning devices anywhere in Hong Kong.

When announcing in 2021 that it raised $25 million in funding from investors, Worldcoin said it aimed to spread the reach of cryptocurrency and financial services as a whole by having users get their irises scanned. The image would be encrypted and turned into a code, and then users would be given a free share of the Worldcoin cryptocurrency.

Worldcoin CEO and Co-founder Alex Blania said at the time that crypto is “a very powerful thing.”

“It will widen the boundaries of the economy in general and give many people access,” Blania said. “We designed the whole system to be fundamentally privacy-preserving. The iris code itself is the only thing leaving the orb. There’s no big database of biometric data.”

In July, Worldcoin launched its technology and its cryptocurrency in 35 cities across 20 countries. It did not launch them in the United States because of concerns about speculation and fraud.

A month later, Kenya became the world’s first nation to suspend Worldcoin’s operations, saying it was concerned about the organization’s collection of iris data.

A spokesperson for Worldcoin told PYMNTS at the time: “During the pause, the team will develop an onboarding program that encompasses more robust crowd control measures and work with local officials to increase understanding of the privacy measures and commitments Worldcoin implements, not only in Kenya but everywhere.”

The organization has also been ordered to stop its operations in Spain and Portugal.

The post Worldcoin Ordered to Stop Iris-Scanning Operations in Hong Kong appeared first on PYMNTS.com.

The move signals that Big Tech companies are increasingly enforcing guardrails around AI systems amid concerns about potential societal harms. Experts say it’s an example of why businesses need to be careful how they use AI.

“Facial recognition technology carries immense privacy harms, which is why the EU AI Act has denominated it as an unacceptable risk and severely limited its usage,” Gal Ringel, co-founder and CEO at data privacy firm Mine, told PYMNTS. “Even without a federal AI law in place in the U.S., companies need to be aware of the AI capabilities they are developing and restrict unnecessary usage accordingly.”

Last year, the Federal Trade Commission (FTC) warned that the increased use of biometrics raises serious concerns about security, privacy, and discrimination.

Shutting Down Access

In an email to PYMNTS, a Microsoft spokesperson revealed that the company had updated its code of conduct on Thursday (May 2). The new language prohibits Microsoft’s artificial intelligence (AI) service from being used for facial recognition purposes by or for law enforcement agencies within the United States.

“Microsoft is banning it because, as a whole, there is still some hesitancy and trepidation regarding the use of facial recognition by police,” Bob Eckel, the CEO of Aware, a biometric solutions provider, told PYMNTS. “Some argue that facial recognition fosters discrimination by being less accurate for certain races, nationalities and ethnicities. However, this is not true.”

Emphasizing the advancements in facial recognition accuracy, Eckel said, “Today’s facial recognition tools are tested and validated by trustworthy third parties, and certain states require police agencies using facial recognition to only use software deemed to be at least 98 percent accurate across all demographics.”

Ringel said the U.S. government has not always supported tech companies’ efforts to protect user privacy. He noted that in the past, the government has pressured companies like Apple to unlock phones to assist law enforcement investigations.

“I hope, given these are only police departments and thus this is more of a local issue, that Microsoft won’t face any retribution for trying to safeguard its AI usage,” he said.

Implications for Business

Tech consultant John Bambenek emphasized the global implications of Microsoft’s ban, telling PYMNTS, “It’s important to note that this applies to law enforcement everywhere, so this couldn’t be used by governments that have a different idea of civil rights to identify, for instance, members of persecuted groups or political opposition.”

The ban raises questions about the broader implications for enterprises utilizing facial recognition technology. “So far, facial recognition in law enforcement seems to be the only area where the risks have slowed down adoption,” Bambenek said. “But Microsoft is essentially saying they can’t solve the problem, which begs the question … what other risks are there (or will there be), and can they be prevented before harm is done.”

The post Microsoft’s Facial-Recognition Ban Points to Growing Qualms Over Privacy  appeared first on PYMNTS.com.