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Fingerprint vs. PIN code

As rumor says, Apple will introduce new fingerprint scanning to open iPhone but may also introduce fingerprint to accept payments. In technical standards it sounds really secure solution, but there are some issues which makes me wonder is this level of identification needed and will it be market standard. And do they require same finger print scanning to other apps. Like logging in to my bank account  app could be done with finger print.

In a history of technology, Apple has introduced several new technology standards for the masses (not invented) like swipe browsing, iPods, app stores etc.

If fingerprint scanning will be introduced for masses in terms of payment key questions are

  • is it safe,
  • is it easy to adopt and
  • does it cost less.

For safety question I am not expert to judge, but in a sense it sounds safer than adding PIN codes to payment terminal instead of pushing finger to iPhone screen. Of course if you are in a bar late at night with questionable condition, then PIN code might be safer. Other question in general for payment industry itself is, do we need payment terminals to add PIN codes, could you phone app be PIN code terminal which sends info to cash register.

Secondly easy adoption for masses is crucial. If customer can only use his finger to confirm payment, it may speed up one transaction at the store meaning more customers in less time, which is accepted by the merchant. If process of payment requires more steps, then PIN code still stays a valid system. If there is compromise between two systems, then is will be even harder to adopt one system over another.

Finally how much it will cost and does it require new investments for merchant? If it is costly and there isn't critical mass to use it, then forget about it!

It will be intresting to see, if Apple will introduce finger print scanning more than their own ecosystem.

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This post is from a series of posts in the group:

Payments strategies 2015-2020-2030

Payments systems visions, strategies, trends, pilots, forecasting, and planning for the short-, medium-, and far-term.


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