Category: Mobile Payments

While the biometrics trends have been focusing on fingerprints, the Chinese giant is looking at eyes.

Biometrics based mobile payment security is still in its early days. So far, certain companies, such as Apple, have introduced fingerprint scanning to verify a device user’s identity. However, Alibaba has something else in mind.

Alibaba’s payments and financial services affiliate, Ant Financial, recently announced new plans.

Ant Financial purchased EyeVerify for an undisclosed amount. EyeVerify is a startup based in Kansas City, Missouri. Reports have suggested that the acquisition may have been made for anywhere from $70 million to $100 million. This suggests that the e-commerce giant from China may be looking into a new kind of mobile payments security.

Not only will this purchase provide the company with one more step in expanding its reach into the western market, but it also reveals an interest in biometric security. That type of technology analyzes biological features that can be detected with scanners. In the case of EyeVerify, the software they produce can analyze and recognize the veins on the sclera (the visible part of the eyeball that is white inc color).

This mobile payment security uses a smartphone’s front-facing camera to capture the vein patterns of the eye.

Once the pattern has been captured, it is recorded so that it can be used for certain mobile security features. These can include logging into an account or even unlocking a phone, similar to the way fingerprint scanners are currently used.

According to EyeVerify, this type of biometric security provides the same level of verification protection as a password of 50 characters in length.

Ant Financial first introduced biometric mobile payment security software into its Alipay app in July 2015. This was released exclusively to a small group of beta testers. The beta testers have the ability to log into their accounts using traditional password and/or fingerprint readings. That said, they can also choose to have their eyes scanned in order to log in.

Companies from China stand to gain a great deal from biometric security investments. The reason is that the country is facing a massive battle against online fraud and every new layer of security protection can go a long way.

Both PayPal and Visa announced that the credit card service would soon be available to the platform’s merchants.

Visa and PayPal have both announced that Braintree mobile payments using merchants will soon have access to Visa Checkout. Braintree is PayPal’s payment processing company catering to online companies. Some of the more notable brands using these mobile payments include Uber, Pinterest, Airbnb and Evenbrite.

With Braintree, merchants can accept a spectrum of different types of online payment options.

The Braintree mobile payments platform lets merchants accept transactions by way of a mobile app, online and in-store. Soon, it will also include Visa Checkout as an option. In this way, Visa cardholders will be able to make a payment to these merchants using any connected device. Visa Checkout is already being used by several online merchants including Walgreens, Best Buy and Starbucks.

A statement from the credit card company pointed out that Visa Checkout will bring familiarity to Braintree mobile payments.

Visa senior vice president of digital solutions, Sam Shrauger, said “With the Visa card at the center of the payment experience, Visa Checkout brings familiarity and trust to digital shopping offered by Braintree’s customers — some of the most innovative merchants driving eCommerce and mCommerce today.” He also added that Visa is “thrilled” with their new partnership with Braintree and PayPal for improving the way credit cards work on any connected device.

Merchants in the United States will gain access to Visa Checkout through the Braintree SDK in early 2017. The seamless integration of that SDK makes it possible for merchants to enable new buying experiences and payment options. At the moment, there are 14 million consumer accounts with Visa Checkout as well as thousands of merchant accounts.

This new agreement between PayPal and Visa has arrived at a time when some of the heat has eased in the rivalry between the two companies. They announced a strategic partnership in July. That brought the largest global payment network together with the biggest digital payments network. With Braintree mobile payments there will be improved choice for consumers paying with PayPal accounts. The companies feel this is taking them both “on a new path.”