Biometrics has been a Hollywood spy-movie phenomenon for years, which probably explains the slight apprehension people feel now that it has actually become a reality. Biometrics studies a person's unique physical characteristics such as fingerprints, voice pattern and even the shape of a face. As these characteristics can provide undeniable proof of identity, many look to biometrics as a solid solution to the increasing threat of identity theft.
Many American grocery stores are already putting this technology to the test with services such as 'Pay By Touch.' Simply register your bank account and fingerprint with a service provider such as Pay By Touch and then each time you shop at participating retailer, you just swipe your finger to complete your purchase.
Will biometrics be a buzzword for the next few years? Absolutely — it's a fantastic technology with great possibilities. Will it sweep the world of payment processing? Not in the way you might think.
You might use your fingerprint to verify your credit or debit card purchases, but it is unlikely that it will be your only tool for doing so. Those plastic cards that fill our wallets offer great branding for their providers, so unless they develop ways to add the convenience and function without losing brand power, you'll likely see a pairing of fingerprint technology with your smart card.
When will all of this happen? It's an evolutionary process. In places like Paris, a lot of this new technology is already in place. Places like South Africa and other developing markets with cash-based economies that did not utilize transactional payment technologies five years ago can jump in right now with relatively low expense. In Canada, however, our once pioneering dependence on debit and credit cards is actually setting us back in terms of time, as a lengthy migration process must be undertaken to get everybody caught up.
This time next year, even though it will see definite growth, we'll still be talking about implementing Smart Cards and IP applications. On the other hand, 10 to 15 years from now you'll be using the same card for transit, and to buy your newspaper from a vending machine, that you use to buy your morning coffee, all in record time. It's going to seem like it all happened overnight, but it will take years.
That doesn't mean you should wait to get on board. It's the small chain and independent retailers who really stand to gain the most from this evolution. The relatively low cost associated with offering your customers the latest and most secure payment processing services available will give you a leg up on the big players who will incur a huge cost over a long period of time to implement these technologies.
Businesses who partner with a provider will benefit from the delivery of the latest technologies and the competitive edge they offer as soon as they are ready for market.
