How face biometric payment companies can build consumer confidence: study

Biometrics payment providers still have a long way ahead to convince consumers to make transactions by scanning their faces. But a new study published by researchers in Australia and New Zealand delves into psychological factors that may encourage shoppers to try facial recognition payment technology such as those from PopID, PayByFace, Face Pay or Payface.

Face biometric-based payments have been finding their way into retail, transportation, hospitality and travel. Despite this, consumers view face biometrics transactions as more risky for their privacy and security, researchers from the Queensland University of Technology and University of Auckland conclude in a paper published by the Journal of Retailing and Consumer Services.

One way to attract them is to introduce in-store signage, point-of-purchase (POS) graphics, on-screen videos and other materials to communicate how retail biometrics are used and highlight their convenience. Another tip offered by the study is introducing extra manpower to help customers acquaint themselves with the technology alongside promotional incentives. Finally, companies should help consumers overcome their fear of overspending by introducing confirmation prompts while paying higher amounts.

The researchers applied the Basic Psychology Needs Theory (BPNT), which delves into human needs such as autonomy, competence and relatedness.

“Retailers, service-based businesses and smart technology providers will be able to use such knowledge to generate better segmentation and targeting strategies, and marketing communication strategies to encourage consumer trial and adoption of new smart retail technologies,” the paper concludes.

Big Tech eyes global biometric payments market

Consumers may still be skeptical about paying with their faces but according to research from analytics company GlobalData, by 2035 biometric payments will be mainstream.

According to its 2023 Financial Services Consumer Survey, simplicity and speed are the most important factors in choosing a payment method in-store, ahead of privacy and anonymity.

Thanks to their global presence and brand, big tech companies such as Google are hoping to achieve success in payments and financial services. Amazon and Apple, for instance, have launched retail banking products. GlobalData, however, warns that big tech is also facing regulatory headwinds while traditional financial and payment companies are investing more in biometric payments.

Article Topics

biometric payments  |  biometrics  |  consumer adoption  |  face biometrics  |  retail biometrics