One of the biggest payments processing companies has revealed it is developing a chip-and-pin terminal that includes facial recognition technology.<\/p>\n
Worldpay’s prototype automatically takes a photo of a shop customer’s face the first time they use it and then references the image to verify their identity on subsequent transactions.<\/p>\n
The firm says the innovation could help reduce payment card fraud.<\/p>\n
But one campaign group has raised privacy concerns.<\/p>\n
At present, the test device is only being trialled internally at Worldpay. But a spokesman said that it could be deployed within five years if retailers showed interest.<\/p>\n
The firm’s existing machines are already used at about 400,000 stores across the world.<\/p>\n
‘No-hassle solution’<\/strong><\/p>\n The prototype – dubbed a Pin Entry Device Camera (PED cam) – features an upward-facing image sensor.<\/p>\n The firm says it would store the captured images in a “secure” central database.<\/p>\n “Biometrics has attracted a lot of attention,” said Worldpay’s director of technology innovation, Nick Telford-Reed.<\/p>\n “But people don’t want the admin hassle of registering their details. With this prototype, we would remove that hassle.<\/p>\n “Card users could be automatically enrolled in the system when they use their card.<\/p>\n “The design also means retailers would not have to find space for another device on their already busy sales counters.”<\/p>\n Because facial recognition tech is not foolproof, Worldpay is not suggesting that shoppers be blocked from making payments if its computer system failed to make a match.<\/p>\n Rather, it suggests that tills would display an “authorisation needed” alert, prompting shop staff to request an additional ID, such as a driving licence.<\/p>\n Fraud losses<\/strong><\/p>\n Although chip-and-pin technology has helped reduce card fraud in stores, it has not eliminated the problem.<\/p>\n In the UK, thieves can still make tap-and-go payments of up to \u00a330 without entering a Pin, and criminals have been known to spy on victims entering their codes before stealing their cards.<\/p>\n According to the UK Cards Association, losses from fraudulent face-to-face card transactions in shops totalled \u00a349.2m last year.<\/p>\n Worldpay is not the only financial company looking into the technology to tackle card fraud.<\/p>\n \uf0a7 Mastercard is testing an app that requires shoppers to take a photo of themselves to verify online purchases Privacy worries<\/strong><\/p>\n Facial recognition’s major advantage over fingerprints is that it is harder to use the information to fool people if hackers steal the biometric details.<\/p>\n The danger of this was highlighted by a US government breach in April that resulted in the loss of up to 5.6 million employees’ prints.<\/p>\n Even so, privacy activists at Big Brother Watch have raised concerns.<\/p>\n “Whenever a company thinks of introducing such invasive technology, they must ensure the highest levels of protection are in place to safeguard people from misuse,” said the organisation’s research director, Daniel Nesbitt.<\/p>\n “It is important that a level-headed and wide-ranging debate takes place on whether facial recognition should become mainstream.<\/p>\n “Our privacy must not be forgotten in the rush to introduce new and potentially innovative ideas.” One of the biggest payments processing companies has revealed it is developing a chip-and-pin terminal that includes facial recognition technology. Worldpay’s prototype automatically takes a photo of a shop customer’s face the first time they use it and then references the image to verify their identity on subsequent transactions. The firm says the innovation could […]<\/p>\n","protected":false},"author":29,"featured_media":156258,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[18],"yoast_head":"\n
\n\uf0a7 American Express has said it is also experimenting with the use of facial recognition in its labs
\n\uf0a7 In the UK, PayPal carried out a limited trail in 2013 that allowed shoppers to make payments via facial scans that did away with the need to show cards altogether<\/p>\n
\n–
\nBy: BBC<\/p>\n","protected":false},"excerpt":{"rendered":"