Biometric payment providers still have a long way to go in convincing consumers to make transactions through facial scanning, but a new study by researchers in Australia and New Zealand looks at psychological factors that could influence shoppers to try facial recognition payment technologies such as those from PopID, PayByFace, Face Pay or Payface.
Facial recognition payments have found their way into the retail, transportation, hospitality and travel industries. Despite this, consumers view facial recognition transactions as riskier to their privacy and security, researchers from Queensland University of Technology and the University of Auckland concluded in a paper published in the Journal of Retailing and Consumer Services.
One way to attract these customers is to use in-store signage, point-of-purchase graphics, on-screen videos and other materials to explain the use of biometrics in retail and highlight their ease of use. Another tip from the study is to employ additional staff to familiarize customers with the technology, in addition to promotional incentives. Finally, companies should help customers overcome their fear of overspending by introducing confirmation prompts when paying larger amounts.
The researchers applied the Basic Psychology Needs Theory (BPNT), which deals with human needs such as autonomy, competence and relatedness.
“Retailers, service providers and smart technology providers can use this knowledge to develop better segmentation and targeting strategies, as well as marketing communications strategies, to encourage consumers to try and adopt new smart retail technologies,” the document concludes.
Big Tech has its eye on the global biometric payments market
Consumers may still be skeptical about paying with their face, but a study by analytics firm GlobalData predicts biometric payments will be mainstream by 2035.
According to the Financial Services Consumer Survey 2023, simplicity and speed are the most important factors when choosing an in-store payment method, ahead of privacy and anonymity.
Thanks to their global presence and brand, big tech companies like Google are hoping to make inroads into the payments and financial services space. Amazon and Apple, for example, have launched products for retail banking. However, GlobalData warns that the big tech companies are also struggling with regulatory issues, while traditional financial and payments companies are investing more in biometric payments.
Article topics
biometric payments | biometrics | consumer adoption | facial biometrics | retail biometrics
