Convenient Ways to Pay

Leaving home without the need to carry cash around with you is becoming increasingly commonplace, as mobile and digital payment options become more widely available. Many people already use services, such as PayPal, digital wallets and contactless cards, citing convenience and safety as the top reasons for making the switch from cash to cashless payments. But as new tools like artificial intelligence (AI) and facial recognition technology continue to challenge assumptions of what is necessary to complete a payment transaction, we find ourselves on the verge of a new and exciting era where biometric data like fingerprints and facial structure may be all we need to make a purchase.

One example of how these technologies are changing our shopping experience is the Florida-based start-up, SensibleVision, which recently launched 3DWALLET: a payment system designed to replace card and cash payments with a three-dimensional (3D) facial recognition platform. Retailers can use 3DWALLET to scan the faces of customers in store and automatically charge them for their purchases without the need for them to get in line or pay at a register.

3DWALLET has not only simplified the payment process but it has also added anotherlevel of security by using biometric data to verify customer identity. Furthermore, according to SensibleVision CEO and co-founder George Brostoff, the ease and convenience offered by 3DWALLET also make it “an AI power tool to let brick-and-mortar shops, many of which are in trouble, compete with the digital world when it comes to customer experience”

Still, 3DWALLET is just one of the newest examples of an entire category of new payment systems, known as ‘naked payments’, which stand to revolutionise the service industry. These systems have no need for credit cards or smartphones as they rely only on biometric data to process payments.

While newer systems like ‘naked payments’ are still in the early stages of development, one development that may be coming our way soon is the ability to conduct peer-to-peer digital payments, via WhatsApp. The service was launched in India, this past February and according toTechCrunch.com it has received the support of "a number of Indian banks, including State Bank of India, ICICI Bank, HDFC Bank and Axis Bank." Although the technology isn’t as seamlessly integrated into everyday life as ‘naked payments’ because users will still need to their Smartphones to access the app and verify their phone numbers, the easy marriage of a popular messaging service and payment technologies is another brilliant example of customers’ growing comfort with non-traditional payment systems and the need for financial institutions to recognise and adapt to the changing trends in our industry.

Of course, the ever-evolving nature of digital payments isn’t the only area of financial services being disrupted by new and emerging technologies. Still, it is something to which financial institutions should always be paying attention if we are to continue providing our customers with reliable, convenient service that meets their changing needs and expectations.