Johannesburg-based Fingerprint-IT, in conjunction with Sagem, is preparing to roll-out what it claims to be the first commercially available non-card-based biometrics electronic pay point solution to the South African retail market.
This follows the successful implementation of similar technology in parts of the US.
Fingerprint-IT director Bryan Kimmel argues that many South Africans would benefit from the biometric pay point technology, which is based on the company`s BioIdentity solution, unveiled in October.
Kimmel believes the biometrics-based electronic pay point system has the potential to reduce debit withdrawal charges and eliminate fraud to some extent for the lower end of the market. It provides transaction facilitation through the authentication or identification of individuals.
He explains that BioIdentity is a third-party verification and identity register, which requires that clients submit their identity details to a vendor. The information is captured and submitted to the register over the Internet, via GPRS technology.
Fingerprint scanner
"The client initiates a new transaction when purchasing something or when his identity has been confirmed. He does this by placing his finger on a fingerprint scanner, and BioIdentity then returns a positive, negative or unknown result."
The scanner, Sagem`s "BIO930 by Morphotouch second-generation MT2G", processes transactions through a 32-bit RISC ARM9 microprocessor and analyses fingerprints in less than a second. The terminal communicates via its V32 Bis modem and offers a wider range of use in the GSM/GPRS version, and can also consult a server centre via a radio link.
Fingerprint-IT and Sagem are working together to integrate the BioIdentity solution with Sagem`s terminal.
In SA, say Kimmel, biometric retail technology could also benefit split families, where often the breadwinner is a migrant labourer living away from home. They can now empower family members to shop legally on their accounts without giving them their ATM card or PIN code.
For retailers, he adds, benefits lie in quicker checkout and customer convenience, as well as customer pattern tracking, which allows directed and promotional advertising. The system also provides age verification for the sale of tobacco, alcohol and movies.
According to the Food Marketing Institute, an international trade group representing retailers, the global use of biometric payment systems by retailers increased by 35% from spring 2004 to spring 2005.
Wireless environment
BMI-TechKnowledge analyst Richard Hurst believes biometric-based payment systems are likely to gain popularity as retailers move to a wireless environment, seeking cost-effective wireless solutions.
He maintains that SA`s inadequate and expensive bandwidth would not be an inhibiting factor for such solutions, as they are not data-intensive.
As opposed to the traditional speedpoint used for card transactions, says Hurst, a GSM/GPRS biometric-based payment system cuts out the cost of a fixed-line call.
Dimension Data GM of security solutions Gary Middleton agrees that biometric growth will be seen in niche applications such as retail.
"We aren`t seeing any corporate or enterprise investment in biometrics for desktop applications," he says, adding that issues of cost and questions about accuracy seem to have an inhibitive effect.
It could take time before such technology gains widespread acceptance, Middleton warns.
"We`ve seen it with credit and debit cards. It took years for people to start trusting the technology and for it to gain credibility."
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