Point-of-sale system provider SoftPoint is adding facial recognition solutions to its network of retailers, in the latest integration of biometric verification in retail applications.
This integration will utilize BigBear.ai’s Trueface facial recognition software for payments at banks, restaurants, convenience stores, and event venues. One of the main reasons for incorporating biometrics is to mitigate fraud risk and prevent unauthorized transactions.
This follows news that South Korea’s mobile platform, Toss, will roll out its Face Pay biometric payments solution at the top three convenience store chains in Seoul’s Gangnam District.
The Toss platform requires users to register their facial image and payment card credentials. Once the consumer’s face is recognized at the point of sale, their payment card is automatically charged for the purchase.
“Convenience stores are always looking to improve throughput at the point of sale and Toss Face Pay is next-level convenience for shoppers who don’t have to reach for their phone or wallet to pay,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research.
Potential Bottlenecks
The demand for convenience is particularly high in busy shopping districts like the Gangnam District, where customers have come to expect speed and ease.
GS Retail, one of the retailers that will be incorporating Toss Face Pay, noted that customers often approach the register with merchandise and other items in both hands, making it difficult for them to use their hands to pay.
However, while facial recognition software could ideally address these checkout bottlenecks, it is unclear how many users have signed up with Toss Face Pay.
There are also concerns about accuracy. Another Seoul retailer, BGF Retail, reported nearly 100% payment accuracy during initial pilots of the facial recognition program. However, issues may arise with a wider deployment, driven by varying store conditions, inadequate lighting, or a broader user population.
Inevitable Adoption
Despite any initial hurdles, the security and convenience benefits of biometric authentication means its continued adoption is inevitable. While the SoftPoint and Toss integrations represent biometric verification in retail applications, there is clearly also a place for biometrics in e-commerce transactions.
“The real need for identity verification is with card-not-present transactions, and it would be great to see facial recognition technology deployed in conjunction with technology like 3D Secure 2.0, where biometrics can work to reduce both fraud and friction in ecommerce transactions,” Apgar said.
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