October 23, 2020

A fingerprint reader in the wallet | Technology

A fingerprint reader in the wallet | Technology

Safety and comfort are key to the payment and credit services, especially now that the new European directive (PSD2) allows commerce to load directly into the user's account, without intermediaries. In addition, card trading companies have reacted to the emergence of large technology in this market and, with the addition of applications such as Google Pay or Samsung Pay, among many others, to pay from electronic devices, MasterCard, Visa and other entities have developed cards that incorporate fingerprint readers. With them, the transaction can be unequivocally linked to the owner, avoiding the memorization of PIN numbers and having a permanent and unalterable element that guarantees the continuity over time of the security element. Meanwhile, in China, it is already rehearsed with the payment with facial recognition in the subway.

The generalization of contactless cards has been an advance in terms of comfort. But companies are still looking for formulas that, in addition, be safe. Linking the account to a unique and unrepeatable feature is one of the solutions. It is already applied in banking, but in the future it will be applied in all areas. The United States wants to have facial recognition systems in the main airports in two years.

With the cards with fingerprint readers, the user places his finger on the sensor and replaces the PIN that is now required for purchases above a certain amount. It's safer (no one can confirm the transaction without your digital ID) and faster.

MasterCard has introduced and tested in South Africa its first cards with built-in fingerprint reader. Visa has also developed a pilot program in the United States and Cyprus. To the mentioned advantages, this company adds that with this system it is unnecessary to update the sales terminals, since the existing ones are compatible, and the sensors do not need a battery because they use the power of the payment terminal.

A fingerprint reader in the wallet

"The world is moving fast to a future free of passwords. Users realize that Biometric technology can make your lives easier"Says Jack Forestell, head of Global Market Solutions for Visa on the company's website.

This technology is getting closer. The British bank NatWest has already distributed it among 200 customers to begin testing in collaboration with security firm Gemalto, Visa and MarterCard.

New directive

The arrival of the new identification system has been accelerated by the Second Payment Services Directive (PSD2, for its acronym in English Payment Service Providers), which aims to create a single market for payments in the European Union that is more agile, competitive and secure.

According to BBVA, until now, when a purchase is made on-line, the trade has to resort to a series of intermediaries, such as electronic payment providers, who in turn contact the card company (for example, Visa or MasterCard) that finally charge the bill to a checking account. .

However, the PSD2 allows the consumer to directly authorize the trade to be charged through his bank account: the merchant and the bank communicate directly using an API (Application Programm Interface).

This implies that banks have to allow access to third-party companies, known as TPPs (Third Party Payment Service Providers), and these must guarantee all security measures, where biometric identification plays a fundamental role.

The two main limitations are the possibility of replicating the footprint or attacks on the databases where the personal data linked to it is stored. The developers of the cards, such as Gemalto, defend that the personal information related to the fingerprint is not stored in the database of the bank or in the store but on the card, so it is always in the hands of the user. This formula guarantees privacy, but there is still 100% unresolved the possibility that someone could artificially reproduce the fingerprints and the permanent threat of pirates that steal biometric data and use them illegally is maintained.

Enter the subway by the face

The Metro of the Chinese city of Shenzhen has begun to test a technology of ultrafast 5G network to allow the collection of transport by facial recognition, as reported South China Morning Post.

The system has been put to the test at the Futian station, where you can pay with the ticket or with barcodes. Now, users can also scan their face on a screen at the entrance and the fee is immediately deducted from the associated bank account.

The introduction of facial recognition-and-payment services to the public transit system marks another step by China to integrating facial recognition and other artificial intelligence-based technology into everyday life in the world's most populous nation.

Consumers can already pay for fried chicken at KFC in China with its "Smile to Pay" facial recognition system, first introduced at an outlet in Hangzhou in January 2017.


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