Mastercard launches Biometric Checkout Program in Uruguay
Mastercard has launched a Biometric Checkout Program at Tienda Inglesa's Red Expres store in Uruguay, marking the first pilot in Latin America. The program allows customers to pay using their palm biometrics, which are linked to their payment credentials. This initiative aims to provide faster and more secure payments, integrating with loyalty programs for a personalized experience.
Mastercard collaborates with Ingenico, Fulcrum Biometrics, Fujitsu Frontech, and Scanntech to implement this technology. This expansion follows the program's initial launch in Brazil in 2022 and later in the Asia Pacific region. More biometric pilots are planned globally for later this year.
- First Biometric Checkout Program pilot in Latin America.
- Enhanced customer experience with faster payments and shorter checkout lines.
- Partnership with leading tech companies like Ingenico, Fulcrum Biometrics, Fujitsu Frontech, and Scanntech.
- Integration with loyalty programs for personalized service.
- Secure payment method using palm biometrics, reducing identity theft and payment card fraud.
- Expansion of Mastercard's Biometric Checkout Program from Brazil and Asia Pacific to Latin America.
- No specific financial data or projected revenue impacts mentioned, leaving uncertainty about profitability.
- Potential for initial consumer resistance or privacy concerns regarding biometric data usage.
- Implementation costs for merchants could be high, affecting early adoption rates.
Insights
Mastercard's launch of the Biometric Checkout Program in Uruguay is a significant step forward in retail payment technology. Biometric payments, particularly palm vein technology, offer a faster and more secure alternative to traditional methods like chip and pin. The involvement of companies like Ingenico and Fujitsu underscores the robustness of this technology.
From a technical perspective, palm vein biometrics are highly secure because the veins are located underneath the skin, making them difficult to replicate or forge. This technology ensures a high level of precision in identifying individuals, which could substantially reduce identity theft and payment card fraud. This added security is likely to resonate well with consumers concerned about data breaches and fraud.
One of the most compelling aspects is the user experience. The seamless, device-free payment option can significantly enhance the speed and convenience of the checkout process. This can be a important differentiator in a competitive retail market where user experience is often a deciding factor for customer loyalty.
However, biometric data involves significant privacy concerns. Companies will need to ensure robust data handling and storage solutions to maintain consumer trust. Additionally, regulatory compliance concerning biometric data will be vital as different countries have varying laws around data privacy.
The introduction of Mastercard's Biometric Checkout Program in Uruguay offers a glimpse into the future of retail payments. This pilot program is the second in the Latin American region, indicating a growing interest and potential market adoption in LAC. MasterCard's choice of Uruguay, a country with a relatively stable and tech-forward market, could serve as a strategic springboard for broader adoption in the region.
For retailers like Tienda Inglesa, integrating biometric payments could enhance customer satisfaction by reducing wait times and offering a personalized shopping experience. This could lead to increased customer loyalty and higher sales volumes. In a broader context, successful implementation could set a precedent, encouraging other retailers to adopt similar technologies.
Nevertheless, market adoption will depend on several factors. One is the cost involved in deploying biometric payment systems. Retailers will have to weigh the potential benefits against the initial investment and ongoing maintenance costs. Another factor is consumer acceptance. While the technology promises convenience and security, consumers may have reservations about sharing biometric data. Effective communication and education about the benefits and security of the system will be important for widespread adoption.
From a financial perspective, Mastercard's expansion of its Biometric Checkout Program is a bold move aimed at capturing a larger share of the payment processing market. By integrating cutting-edge biometric technologies, Mastercard differentiates itself from competitors and positions itself as a leader in payment innovation. This could potentially lead to increased transaction volumes and higher revenues for Mastercard in the long term.
The partnership with established tech companies like Ingenico and Fujitsu also adds credibility to the initiative. These collaborations can lower the risk associated with the implementation of new technologies by leveraging the expertise and resources of multiple stakeholders. This collective effort could expedite the adoption process, making it more cost-effective in the long run.
In the short term, the financial impact may be minimal due to the pilot nature of the program. However, successful pilots can pave the way for broader rollouts, which could have a significant positive impact on Mastercard's financials. Investors should keep an eye on the performance metrics of these pilot programs, such as user adoption rates and transaction volumes, as indicators of future financial performance.
Mastercard enhances checkout experience at Red Expres Store with partners Ingenico, Fujitsu Frontech and Scanntech
Mastercard launches Biometric Checkout Program in
Red Expres shoppers can register their information, payment credential and biometric on-site and effortlessly pay for their goods by placing their hand over a sensor at the payment terminal. The Biometric Checkout Program allows for faster payment and shorter lines at checkout, and integrates with loyalty programs, leading to an enhanced and personalized customer experience.
“We are excited to expand our Biometric Checkout Program further into
Mastercard’s Biometric Checkout Program represents a first-of-its-kind technology framework to establish standards for new ways to pay in-store. A cutting-edge payment system, developed by Ingenico and Fulcrum Biometrics, a Fujitsu company, enables pilot participants to register their palm biometrics and link it to any debit, prepaid or credit card, allowing them to seamlessly pay without a wallet or device.
“Palm is one of the most secure biometrics for identifying customers and enabling a smooth and seamless payment experience. It is faster than traditional chip and pin and offers several tangible advantages, including unmatched security. We are seeing a lot of interest from merchants in the solution that we have developed with Fulcrum Biometrics. Through the Mastercard Program, these global partnerships are set to transform payment experiences for more consumers,” said Arnaud Dubreuil, Director of Innovation, Ingenico.
“We believe that biometrics will create an easier and more secure environment for everyone around the world, in our ever-expanding digital society. I'm very happy to see our PalmSecure and Fulcrum Biometrics technology shaping Ingenico’s next generation of payment solutions through the Mastercard BCO program,” stated Takahiro Matsumura, Corporate Vice President of Fujitsu Frontech Limited and Global Head of PalmSecure Business.
"We are proud to be the first in
Verónica Bustamante, General Manager of Scanntech, commented on the company's commitment to technological development and process simplification with maximum security. "Due to its high level of precision in identifying individuals, palm vein technology helps merchants reduce identity theft and payment card fraud, which cause significant losses. In this way, we continue to bring innovative solutions according to our customers' needs, helping them grow their business," she noted.
Launched in Spring 2022 in
About Ingenico
Ingenico is the global leader in payment acceptance and services. We support our customers, and their customers to do more with payments. Active in 37 countries, with over 3,500 employees we have been at the forefront of the commerce landscape for over four decades. With more than 40 million payment devices deployed worldwide, powered by over 2,500 apps, the company is servicing the needs of millions of consumers every day. Through our advanced integrated solutions and network of partnerships, we simplify the world of payments and bring value added services to move commerce forward.
About Fujitsu
Fujitsu’s purpose is to make the world more sustainable by building trust in society through innovation. As the digital transformation partner of choice for customers in over 100 countries, our 124,000 employees work to resolve some of the greatest challenges facing humanity. Our range of services and solutions draw on five key technologies: Computing, Networks, AI, Data & Security, and Converging Technologies, which we bring together to deliver sustainability transformation. Fujitsu Limited (TSE:6702) reported consolidated revenues of
About Scanntech
Scanntech was founded in
About Tienda Inglesa Group / Red Expres
With over 150 years of history in the Uruguayan market, Tienda Inglesa Group in the recent years has created a vast network of supermarket chain identified as Red Expres. This network comprises over 60 branches spread across
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240603887414/en/
Andrea Denadai
Andrea.Denadai@mastercard.com
Source: Mastercard Incorporated
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