America’s largest bank and one of the largest in the world, J.P. Morgan, is preparing to launch biometric payments next year and is currently carrying out pilot projects.
J.P. Morgan has chosen PopID – which verifies a person’s identity via facial recognition, among other methods – as the backbone for the project.
The massive financial corporation is clearly unwilling to be left behind the likes of Mastercard or Visa, who are both implementing biometrics-powered payments.
According to the bank, one of the first events where this was trialed was the Formula 1 race in Miami, and that was also the first time this happened at a Formula 1 venue.
The ultimate goal is to expand authentication based on individuals’ fingerprints, palms, and faces to anyone interested, but with a focus on stores, restaurants, and various event venues.
J.P. Morgan says this will be a faster and safer, as well as “personalized” way for customers to pay, while those with things to sell are promised higher turnover and improved customer loyalty, but also a centralized place to access transactions and marketing data, say reports.
And what’s in it for the bank, other than potentially amassing large amounts of biometric data? Merchants will have the opportunity to buy J.P. Morgan Payments tablets, though this will not be obligatory, but support and transaction processing fees will be.
In a statement, the bank revealed that it is betting on biometric payments as the industry is forecast to grow to 3 billion users and $5.8 trillion worth of transactions over the next two years. And the giant expects digital commerce to eventually cover online, mobile, and in-store checkout.
To use J.P. Morgan’s version, customers will have to enroll in the program and verify their identity biometrically to pay at checkout or self-service machines.
As for privacy concerns around the use of this technology – J.P. Morgan’s representatives describe it as “a perceived sensitivity towards biometrics.”
