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Biometric Future: Why You May Soon Be Paying With Your Face

Fintech and banking

Jul 25, 2024

4 min. read

James Irwin

Author

Numerous companies have begun to support biometric payments, which allow customers to verify their identity via their face, fingerprint, and other physical features to perform transactions. The trend could become increasingly common in the future.

Key takeaways

Biometric payments allow customers to identify themselves and initiate payments based on their physical features
This involves scanning one’s face, palm, fingerprint, voice, or iris
JP Morgan, Amazon, and Apple are all working with biometric payments
Biometric verification could make payments more convenient for customers and merchants if security concerns are fully addressed

What Are Biometric Payments?

Biometric payments involve verifying and identifying customers based on their physical features — usually by scanning their face, hand, fingerprint, iris, or voice.

The feature can replace or coexist with traditional payment verification features. For instance, it can work alongside two-factor authentication (2FA) or PIN entry for additional security verification.

Biometric payments offer several advantages, such as greater security, faster and more convenient payments, and a reduced need for customers to carry cards and cash.

Payment services that offer biometric verification may be able to do so inexpensively. These services can pass the benefits on to stores and merchants in the form of transaction fees and service fees that are lower than other payment methods.

Safety and Security Concerns of Biometric Technology

Biometric verification is highly secure. Because users must verify themselves with their unique physical features, attackers cannot steal information in the same way they might steal a payment card, PIN, or cash.

Imitation and impersonation are a limited concern with biometrics. Liveness detection, which ensures that a real person is being verified, makes it difficult to trick the system. For example, liveness detection can ensure that someone has scanned their real face rather than a photograph.

However, if biometric service providers fail to securely store customer information, attackers could breach the database and steal personal user data. Since the data in question is potentially biological features such as fingerprints or facial features, many view this as a deeper concern than traditional privacy breaches.

A database breach could expose identifying information and compromise user privacy — a significant problem even if the stolen information does not allow the attacker to perform an unauthorized payment through the biometric payment service itself.

Companies Using Biometrics

Numerous companies are using biometric technology for payments or are preparing to do so.

JPMorgan Chase is planning to introduce face and palm payments at retailers by 2025 in partnership with biometrics software firm PopID.

Payments giant MasterCard similarly worked with PopID and other partners to introduce biometric payments in Brazil in 2022. In 2023, Mastercard said it was working with NEC to extend biometric payment features to the Asia Pacific Region.

Amazon began to introduce palm payments in 2020. In 2023, the company said it would bring the feature to its subsidiary, Whole Foods, in all US locations. It also described adoption at various restaurants, travel retailers, and sports and entertainment venues.

Apple, meanwhile, allows customers to use Face ID to authenticate Apple Pay payments. Unlike other approaches, merchants only need to support Apple Pay, leaving Apple users to choose to verify their payments with or without the biometric feature.

The sector is likely to grow, with one report from Goode Intelligence suggesting that biometric payments could surpass $5.76 trillion in 2026 with more than 3 billion users.

A UK multi-currency account can streamline how you manage your finances. Whether for business or personal use, a multi-currency account provides you with added freedom and flexibility and removes barriers to payments and transfer methods.

Here is everything you need to know about UK multi-currency accounts.

A Payset UK multi-currency account is a single account with which you can hold, send, and receive funds in up to 38 currencies. This allows business or personal account holders to save endless time and money on foreign exchange, and money transfers, which from a traditional bank account would be far more expensive and slow.

From your personal UK-based IBAN account, you can transfer money to bank accounts around the world as well as send and receive free and instant transfers to and from other Payset clients. You can send funds using a diverse network of payment networks, including SWIFT, SEPA, Target2, Faster Payments, CHAPS, and more.

When you exchange funds from one currency to another, there are no margins added to our exchange rates and the fees are clearly displayed before you click send. If you, for example, work with multiple currencies, make purchases in other countries, travel frequently, invest in foreign currencies, pay staff in other countries, or receive payments in other currencies, a multi-currency account can save you time, money, and work compared to a traditional bank account.

There are lots of banking institutions and financial services that will aid you in opening a multi-currency account. Often they can allow you to convert and transfer a considerable number of currencies.

Before you open a UK multi-currency account with any platform or service, make sure you have explored all of the different options available to you and have found the best type of account to suit your financial needs.

How Does a UK Multi-Currency Account Work?

A UK multi-currency account works in the same way as a standard bank account or electronic wallet. Although the services provided will change depending on where you choose to open your account and who you choose to open the account with, all multi-currency accounts should allow you to:

Withdraw money

Send and receive payments in multiple currencies internationally

Access your funds for electronic transfers

Earn interest on your account total

In the same way that fees can occur with a standard bank account you may run into additional charges with a UK multi-currency account.

You could be charged for a number of actions including; making withdrawals, account opening and closure fees, transfer fees, and more.

The frequency or amount of these charges will often vary and if you ask your banking agency they will usually be able to tell you exactly how much you will be charged and which services you will be charged for before you open your account.

Alternative Options to Consider Before Opening a UK Multi-Currency Account

There are many alternatives to opening a UK multi-currency account. For example, there are also money transfer services and online electronic wallets such as Payset that allow you to send your money in over 34 currencies without the need for a UK multi-currency account. You can start sending money across the globe or in person today using your existing bank account.

Frequently asked questions

What is a UK multi-currency account/IBAN?

Are there limits to the amount of money I can send and receive with a UK multi currency account?

Which currencies can I send and receive in my UK multi currency account?

How do I add money to my UK multi currency account?

Types of UK Multi-Currency Accounts

Multi-currency IBAN accounts
Personal multi-currency accounts
Multi-currency accounts for business
Multi-currency cash passports
Multi-currency wallets

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