Facial recognition payment: The new way to pay

• Author:
• Author name

  Quantumrun Foresight
• August 1, 2024

Insight summary

Facial recognition (FR) payment technology speeds up transactions by using your face as authentication. While it offers convenience and enhanced security, it also raises privacy concerns and legal challenges. Nonetheless, as the FR payment market grows, its adoption could cover many industries, from retail to government services to public transportation systems.

Facial recognition payment context

Facial recognition payment technology enables consumers to make transactions using their facial features as authentication. This technology works by registering a user's face through a selfie, which is then used to verify their identity during transactions. Technology company PopID already uses FR payments in fast-food chains like CaliExpress and Steak 'N Shake. These advancements simplify the payment process, reducing the time it takes to check in and pay compared to traditional methods like QR codes or mobile apps.

Global partnerships and pilot programs are driving developments in this technology. For example, Mastercard's Biometric Checkout Program, initiated in Brazil in 2022, showed promising results, with 76 percent of participants willing to recommend it. This program is expanding to the Asia-Pacific region in collaboration with NEC Corporation, aiming to offer secure and convenient checkout experiences. Meanwhile, Amazon has integrated pay-by-palm technology in over 500 Whole Foods stores in the US, reflecting the growing adoption of biometric payments by major companies. Additionally, Japan, Kazakhstan, and Russia are implementing facial recognition payment systems in public transportation to enhance commuter convenience and security.

Despite the convenience, privacy concerns and legal challenges have emerged. In March 2024, a class-action lawsuit was filed against Target in Illinois, Texas, for allegedly using FR without customer consent. Nonetheless, the market for mobile biometric payments is projected to grow significantly, with research firm Juniper Research forecasting transactions worth USD $3 trillion by 2025. The adoption of such technology varies globally, with more mature implementations in China, where AliPay and McDonald's have been using biometric payments since 2015. 

Disruptive impact

Facial recognition technology can provide a more seamless and quicker shopping experience, reducing the need to carry physical wallets or remember multiple passwords. It can also enhance security by minimizing the risk of fraud, as FR is harder to forge than traditional payment methods. However, concerns about privacy and the potential misuse of biometric data may lead to some customers refusing to use this service.

Retailers and service providers may benefit from faster transaction times and increased security, leading to higher customer turnover and potentially greater revenue. Additionally, businesses can use biometric data to personalize customer experiences and loyalty programs. However, they may also face challenges related to data protection and compliance with privacy regulations, which could require significant investment in cybersecurity measures.

Governments may need to navigate the complexities of regulating FR payment systems to balance innovation and privacy. They may implement strict data protection laws to safeguard citizens' biometric information and ensure companies adhere to ethical standards. Governments might also use this technology to enhance security measures in public spaces, such as airports and public transportation systems. There may also be global collaboration on setting standards for biometric data to prevent misuse.

Implications of facial recognition payment

Wider implications of FR payment may include: 

• Small businesses facing increased costs to implement biometric payment systems, potentially widening the gap between large and small retailers.


• New laws to balance innovation and data privacy protection leading to enhanced consumer trust.


• Job roles in retail and customer service evolving to focus more on technical support and less on traditional cashier functions.


• Concerns over biometric data security leading to increased demand for cybersecurity professionals.


• Facial recognition technology integration reducing the use of physical payment cards, impacting card manufacturing industries.


• The convenience of facial recognition payments contributing to the decline of cash transactions in urban areas.


• Privacy concerns potentially leading to public protests and influencing political debates on surveillance and data rights.


• Technological advancements in facial recognition enabling its use in other areas, such as public transportation and healthcare.

Questions to consider

• How could using FR payments change your shopping habits and daily routines?


• What steps can you take to protect your biometric data when using FR technology?