The Dallas Morning News

Retailers using biometrics to put payment at your fingertips

July 28, 2004

By Ieva M. Augstums

Your body is now your password, and your fingerprint your credit card.

Torn from the pages of the latest sci-fi novel, biometric technologies _ such as fingerprint verification _ are becoming the norm in how some companies conduct business.

At Palm Beach Tan, your index finger serves as your membership card. At Kroger, your finger is your I.D. if you want to cash payroll checks. And at some Blockbusters, you can simply scan your finger, then pay.

"It can catch people off-guard if they're not familiar with the technology," said Joseph Kim, a senior consultant at International Biometric Group LLC, a research and consulting firm in New York. "We are seeing more applications every day."

The technology has been around for decades, but has been used mainly by the criminal justice system. More recently the technology has been adopted by the retail industry and is becoming available for consumer use.

"One could argue biometrics still hasn't hit the mainstream in the retail industry," Kim said. "Many places are testing the process to see if customers like it."

Blockbuster Inc. is one of those businesses.

The Dallas-based movie rental chain has installed a touch-pay system, made by San Francisco biometrics retailer Pay By Touch, in three North Texas stores to assess the technology and customers' acceptance.

"We have many conceptual tests in progress as we continually look for ways to enhance the convenience of our customers' visits to our stores," Blockbuster spokesman Randy Hargrove said. "If we find Pay By Touch enhances the convenience and experience for our customers, when appropriate, we could move forward from a concept stage to a broader test."

Kroger Co., of Cincinnati, has been using biometrics at many of its grocery stores for years. In College Station, Texas, repeat customers can pay with their fingers and not worry about getting out cash or a credit card. And in nine mid-cities stores, customers can use a finger imaging system to cash payroll checks.

"It's not something that we have decided to roll out in the entire area," Kroger spokesman Russell Richard said. "We want to see how it's working and if people are comfortable using it."

Biometric systems used by consumers don't capture an actual fingerprint. Rather, the electronic reader collects a series of data points, which are unique to each individual, to create a finger image. That image cannot be re-engineered into an actual fingerprint.

At stores where biometrics is used as a method of payment, a customer simply places his finger on the reader and enters his identification code. The purchase is immediately authenticated and linked to the proper financial accounts.

The shopper selects how he or she wants to pay, and the transaction is processed just as if a credit or debit card or check had been presented.

"The whole process takes less than 10 seconds," said Robyn Porter, spokeswoman for BioPay LLC, a biometrics retailer in Herndon, Va. "It takes a bit of explanation at first, but it's great for the merchant and the customer."

Four finger taps on a touchpad is all that's needed to sign up for services at Palm Beach Tan. The Carrollton, Texas-based company verifies your government-issued I.D. and links it to your fingerprint "signature" in the computer.

"Your fingerprint becomes the password to your Palm Beach Tan account," said Tony Passarello, chief marketing officer for Palm Beach Tan Inc. "With one touch, you can walk into any of our salons and tan. It's that easy."

Palm Beach Tan's decision to use biometric technology at its 67 salons nationwide was more than just a matter of convenience.

Biometric believers say the technology also improves accuracy and prevents fraud and identity theft.

"In this day and age with identity theft, this is one tool that we can use to protect the customers," said Richard of Kroger. "Your fingerprint is only unique to you."

Still, many people hesitate to accept finger imaging as part of their daily routines.

Some fear thieves could gain access to their finger images and steal their identities, even though the technology is being touted as a way to stop crimes.

"When you think about it in terms of using biometrics in everyday transactions, then it's not so Big Brotherish," said Caroline McNally, Pay By Touch's chief marketing officer. "It's actually safer than what you are doing today."

It's easier to steal a credit card or bank account number than a finger image, McNally points out.

But will biometrics be widely used?

"It's going to be a complementary thing. It's not going to replace cash and everything," McNally said. "In a lot of environments, it will become ambiguous."