Keyo offering biometric payment system with palm vein authentication
Keyo has developed a biometric payment platform that maps the pattern of blood vessels in a person’s hand to generate a unique biometric identifier connected to their credit card or debit card, according to a report by ChicagoInno.
Using the platform, users are able to authorize payments by simply hovering their palm over their device without requiring any cards, cash or smartphone.
Initially starting with payments, the startup is hoping that their biometric technology will eventually replace many of the physical items people use on an almost daily basis.
“We really see a future without keys, cards, wallets, IDs and tickets,” said Jaxon Klein, co-founder and CEO of Keyo.
Keyo initially partnered with Japanese technology firm Fujitsu to develop the company’s countertop payment terminal, along with the proprietary software Keyo operates on.
Users register for Keyo by creating an account with their credit card information, after which point they will receive a registration code on their phone.
When users visit a store that uses Keyo, they can type in their code on the Keyo device, hover their right hand over the attached payment terminal and the system will capture two infrared photos of their unique pattern of palm veins.
The technology encrypts the pattern, matches it to their account information and only retrieves it during a transaction.
After this initial enrollment process is completed, users can make a payment by tapping the screen to confirm the total, add a tip and place their palm over the device. Users can also track their purchases via an online dashboard.
Keyo’s palm biometrics technology technology detects five million reference points on the palm. The technique is 100 times more precise than fingerprint identification and requires live detection, meaning that blood must be flowing for a hand to be detected.
Since Keyo was founded and developed in Illinois, home of the Biometric Information Privacy Act, the company factored in security and data privacy into the system from the beginning.
The startup stores customers’ biometric data in high security servers using 256-bit encryption, and compares identification against public records to ensure that real people are registering for the platform.
In addition, Keyo has a biometric privacy statement in place and its terms and services explain in detail how they use the data and when it will be deleted if a customer cancels his or her account.
The company’s goal is to secure 50 businesses by the end of the year, starting with local businesses that have repeat customers in specific neighborhoods to establish a concentrated area of biometric payments and instill new payment habits in customers.
Having already raised $325,000 from friends, family and angel investors, the startup plan to raise more funds.
The company is charging a flat 1 percent fee on transactions to stay competitive — particularly among small businesses — as well as incentivize merchants to be a partner.