Credit card giant MasterCard Incorporated MA is trying to brace up cyber security by all means. In this regard, the company will enable consumers to authenticate their transactions using facial recognition.
This technology will allow customers to make payments through their cards by simply scanning their face. Initially, this pilot program will be limited to 500 customers. Depending on its success, the facial recognition technology might be made available to its entire customer base.
This innovative technique reflects the growing need of a stringent security level to lessen fraud and ward off hackers. Using facial recognition, MasterCard will ensure that its cards are being used by none other than the card owner.
In order to make the facial recognition feature possible on handheld, MasterCard has entered into an alliance with smartphone makers such as Apple Inc. AAPL, BlackBerry Limited BBRY, Google Inc. GOOGL, Microsoft Corporation MSFT, and Samsung Electronics Co. Ltd. SSNLF.
The technology will require users to download the MasterCard phone app. After making a payment, customers would be asked for authorization. A user opting facial recognition will have to stare at the phone and blink once. The blinking feature has been incorporated to prevent hackers from simply uploading the users’ photos to gain access to their account. The facial recognition scan will map the user’s face, convert it to 1s and 0s and transmit it over the Internet to MasterCard. The algorithm will be stored in the server.
This new payment system will come in handy for those who do not remember their password and worry about security. Also, this technique should attract the new “selfie” generation. Most importantly, the technology is a relief from fears of theft or loss since it limits the usage of a card only to its owner.
The facial recognition technology is fast emerging after having trying to gain ground for quite some time. Though widely used for security purposes, it is now increasingly being used in a variety of other applications.
MasterCard, however, is not stopping its cyber security mission here. The company is toying with the idea of voice recognition –– a technique for safely approving an online transaction by speaking over one’s phone.
The payment processor company is also working with a Canadian firm, Nymi, to develop a another biometric technology that will authorize transactions by recognizing one’s unique heartbeat.
Other Players Using Facial Recognition
American Express Co. AXP is developing a facial recognition system for mobile applications which enables customers to access their account information securely using the facial mapping software.
In March, the founder of Alibaba Group Holding Ltd. BABA, Jack Ma announced to introduce a service (by 2017) named “Smile to Pay” which will use facial recognition.
Apple has also received a patent that will allow its users to lock and unlock their phones using a selfie.
MasterCard carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment