Amazon.com Inc. (NASDAQ:AMZN) is reportedly working on checkout terminals that will allow customers to pay using their palms through connection to their credit cards. According to people familiar with the issue, customers will be able to scan their palms to pay for purchases in physical stores.
Amazon piloting payment using hand scan at its Amazon Go Stores
The retail giant is planning to pitch the terminals at fast-food restaurants, coffee shops, as well as other businesses that conduct repeat business with its customer. Like most tech companies, Amazon has been trying to be part of the financial lives of its customer, which is leaving credit card networks and banks on edge.
Despite the plans being in the early stages, the company has already started working with Visa Inc. (NYSE: V) to test out the terminals. Equally, it has discussed the project with MasterCard Inc. (NYSE: MA), Wells Fargo & Co (NYSE: WFC), JPMorgan Chase (NYSE: JPM), and Synchrony Financial (NYSE: SYF). The company has been piloting the service at its Amazon Go stores that allow customers to buy without checkouts or cashiers.
Equally, the e-commerce giant has been developing Amazon Pay, which is a digital wallet that customers will use when making payments to online merchants that it does not own. The company’s CEO, Jeff Bezos, has repeatedly stressed the significance of financial services and payments.
Amazon filed a patent featuring a hand scanner
Amazon previously filed a “non-contact biometric identification system” patent that features a hand scanner. The company will have to address issues form customer, and card issuers about how terminals can detect fraud as well as the amount of personal information amazon will receive from the hand scans.
For card issues, they are wary of whether the like of Amazon want to be competitors or collaborators. However, some hold that it would be fine to partake in big tech’s payment ambitions instead of being left out. For Amazon, it is interested in getting the card issuers to help it in enhancing security of the customers’ card accounts.