Facial recognition system allows customers to pay in stores without using an electronic device or a card
Eladio Isoppo — Foto: Nilani Goettems/Valor
When making a purchase, consumers want to avoid queues or time-consuming bureaucracy. To solve this, startup Payface brought to the market a new means of payment that simplifies operations in retail.
The solution uses facial biometrics technology and connects the entire ecosystem of payment methods, including credit cards, private label credit cards, wallets, acquirers and sub-acquirers. Users are not required to use any device or card. Payments are approved through face recognition – it takes a simple glance at the device installed at the cashier.
Payface’s first client was São Paulo-based supermarket St Marche, which saw broad acceptance since the innovation was put in place three months ago. “We are in 500 points of sale in six states,” said Eládio Isoppo, the fintech’s CEO and co-founder. The list of clients include supermarkets Zona Sul (Rio de Janeiro), D’ Ville (Uberlândia, Minas Gerais), Frade (Ilhabela, São Paulo), and Muffato (Paraná). The solution is also in use in Santa Catarina and Bahia.
Customers like it because operations are instantaneous and do not require point-of-sale terminals, cards, or intermediaries. “The consumer can go for a walk and stop at the supermarket to shop, without having to present any document, card, or cell phone,” Mr. Isoppo said. Payface’s next move is to expand to pharmacy chains and smaller stores. To do so, it is seeking partnerships with issuing and acquiring banks to reach small and medium retailers.
The security of the new payment method is in the technology behind the solution, Mr. Isoppo said. Payface holds a PCI Compliance certificate, which attests that the company follows the necessary security rules in processing card data. The consumer’s registration on the Payface platform gathers data such as the tax ID, payment method, and facial biometrics, and is integrated with the software installed in the retail chain. The insertion of the means of payment uses tokenization (the process of replacing real data with equivalent data, with the same format and protected by cryptography).
The development of technologies to reduce reliance on passwords and improve the experience by eliminating friction in data validation has advanced. The process, called passwordless authentication, is also being adopted by the financial system.
A survey by consultancy Netbr, conducted with the support of its global partner Ping Identity, showed that 77% of the lenders already execute – or are about to do so – some kind of passwordless electronic operation. “We are talking about the same standards used by big techs, now being adopted by the financial industry,” said André Facciolli, CEO of Netbr. According to him, four of the six largest Brazilian banks use the technology in authentication and authorization processes.
Another advance was the use of benefits for employees, such as food and meal vouchers. Bee Vale’s application, with multiple wallets, allows contactless payments by mobile phones. Daniel Oliveira, CEO of paySmart, a fintech that processes payments for companies and has Bee Vale as a client, said that the near field communication (NFC) technology is present in most cell phones and is an option for electronic payments.
*By Fatima Fonseca — São Paulo
Source: Valor International