Fortune magazine is running an article about major retailers considering adopting biometric payment systems and offering it to consumers within the next few years.

According to empirical tests, consumer check out time is reduced by 70% when using biometric verification over other forms of payment like credit or cash. Biometric transactions would increase security for consumers; 13% of all identity thefts occur while personal information is being passed between a purchaser and cashier. These crimes couldn't happen if a transaction is authorized with a biometric scanner. The only information given at the time of purchase is recorded by a fingerprint scanner that matches markers on the buyer's digits with an encrypted file consisting of measurements from a previously created store account. Digital photographs are not stored by the system.

A recent pilot program at four Piggly Wiggly (a grocery chain) stores had promising results. Fifteen percent of consumers who pay electronically signed up for the "Pay By Touch" system and subsequently spent 12% more on groceries and made shopping visits 15% more often. The Fortune article does not mention if these increases could be caused by a passing novelty factor.

Walmart and costco are both analyzing whether or not to roll out biometric payment systems. An independent research study estimates these retailers would immediately save 20% on their processing costs, aside from the potential of increased consumer purchases.

Via (Fortune)