JPMorgan Chase is expected to launch biometric payments, as it is currently involved in several pilot programs for the technology.
Last year, JPMorgan announced a biometric payment pilot program using “palm and face identification.”
“J.P. Morgan Payments’ biometrics pilot offering should allow for fast, secure and simple checkout experiences for its merchants’ customers, delivering a modern payments experience to enhance customer loyalty,” JPMorgan said at the time. “As the leading global merchant acquirer, J.P. Morgan Payments is uniquely positioned to enable this solution to meet shopper expectations without compromising security and reliability.”
Merchants are interested in biometric scans, according to Prashant Sharma, executive director of biometrics and identity solutions at JPMorgan.
“[E]verybody wants to provide a streamlined, personalized experience to the consumer,” Sharma said.
According to an ABI Research report on “Biometric Technologies and Applications,” the biometric industry is expected to grow from $7 billion in 2022 to $9 billion in 2027.
Research analyst for ABI Research Lucas Steward said in a statement, “Given convenience and user experience, we see a trend of biometric verification often going through a personal device where possible, that being using your smartphone or other to capture or verify your own biometric data, where apps and web pages increasingly incorporate biometric means of authentication as a password replacement or way to verify oneself.”
“Alongside the usability factor, this trend is underpinned by a clear need for mobility,” he continued. “In terms of standalone biometric devices, the need for mobility in these larger scale kits manifests with movement toward more handheld and portable devices.”
Biometric technology is not without privacy concerns, however.
In 2022, German security researchers purchased a biometric capture device from eBay for $68, only to discover that it contained sensitive military data.
German security researcher Matthias Marx noted the importance of properly securing and disposing of sensitive data to prevent it from falling into the wrong hands. “The irresponsible handling of this high-risk technology is unbelievable,” he said. “It is incomprehensible to us that the manufacturer and former military users do not care that used devices with sensitive data are being hawked online.”
Texas Attorney General Ken Paxton filed suit against Google in 2022 for alleged violations of state law against collecting biometric data without informed consent.
The Capture or Use of Biometric Identifier Act, which the Lone Star State enacted in 2009, prohibits technology companies from using data such as retina or iris scans, fingerprints, voiceprints, or records of hand and face geometry for commercial purposes without permission. The complaint, filed in the District Court of Midland County, Texas, argues that Google has collected such information in “blatant defiance” of the statute since at least 2015.
“Google’s indiscriminate collection of the personal information of Texans, including very sensitive information like biometric identifiers, will not be tolerated,” Paxton remarked in a press release.
Among other examples, the lawsuit argues that Google Photos uses facial recognition technology for uploaded pictures, including those with nonconsenting bystanders, to render its algorithm “better at scanning and analyzing faces” through machine learning, thereby enhancing the company’s commercial products. Likewise, Google Assistant allegedly collects voiceprints and uses the information to heighten the accuracy of voice recognition technology.