Credit or Debit by Finger Scan
While BioPay focuses on providing a biometric system for consumers' checking accounts, Pay By Touch is taking a larger approach and giving consumers a link to their credit or debit card accounts for even greater convenience.
"People don't usually like to carry around all their credit cards and debit cards because then you have a really fat wallet," said Pay By Touch Chief Marketing Officer Caroline McNally. "With our product, you can put all of those cards into the system and then access them simply with your finger."
Formed in 2003 through the acquisition of companies producing biometric systems, Pay By Touch has developed a finger scanner that works in conjunction with most retail terminals. Since the product integration is quick and easy, McNally said the company is working with national retail chains to quickly spread the biometric payment system and expose more people to the technology.
The company has a sweeping partnership with IBM to distribute Pay By Touch products globally, and recently worked a deal with the southeast grocery store chain Piggly Wiggly to install Pay By Touch systems in five of its stores.
To enroll, a customer visits the store's information desk or a kiosk in the store. The individual scans his or her finger and enters a nine-digit number to help the system locate the finger scan faster. Then the customer scans any credit or debit cards they want to have associated with their print. The customer can also enter their checking account by simply swiping a check through the system.
McNally said that customer and business owners alike have given positive feedback on the system's speed and security benefits. Merchants are selecting the product because it influences consumers' payment choices and thereby reduces the transaction costs, she said. Consumers are selecting the product because they can register and use all forms of payment instead of checks alone.
In some cases the system has drastically improved business. McNally told of a client that owns a chain of video stores and has increased business because the system speeds up the checkout process. Video store customers commonly forget their membership cards and cashiers have to search the person's identification and address to find the account. With the Pay By Touch system, McNally said, the cashier can verify a person's membership and enable them to pay with one scan of their finger.
"The message from this video retailer is that it cuts down the number of people in line, which translates into bottom-line dollars," she said.
Consumers have shown interest in the product not just for speed, but also for their own safety. After signing up to use the product at a Safeway grocery store in Seattle, McNally said a senior citizen convinced several fellow seniors to sign up for the product. It appeals to the older generation because they feel safer not having to walk around with money for fear of being mugged.
In the future, the product could also be used in the fight against underage drinking and smoking because the fingerprint could be associated with a person's age, McNally said.
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