Online payment processor PayPal is experimenting with a new photo-based user verification system that recognises users based on their face. The San Jose-based company has chosen twelve retailers in Richmond upon Thames to test its latest user verification system in an effort to reduce fraud for PayPal’s mobile users.
The photo verification system allows retailers to verify a customer’s identity using the PayPal mobile app. Instead of using their credit card or cash to buy something, users simply ‘check in’ with a nearby shop using PayPal’s mobile app. The retailer can then charge the customers by clicking on their image and completing the sale.
PayPal’s application then debits the amount from the user’s account and sends an email invoice containing information about their purchase. The photo-based user verification system is currently being tested by twelve merchants, but PayPal has plans to extend it to over 2,000 merchants by the end of the year.
Rob Harper, PayPal’s head of retail services, claims that the new application could allow customers to enjoy shopping with their ‘wallet or purse at home’. The PayPal executive also stated that the application is leading high street retailers towards a retail environment where customers may shop exclusively with their phones.
Some people have expressed concerns about the system, claiming that it could be inconvenient for those that frequently change their makeup or hairstyle to remain ‘verifiable’ by retailers. PayPal hasn’t yet addressed these concerns but plans to use the Richmond-based trial as an opportunity to iron out any application issues.
Owned by eBay, the online payment platform has increased its efforts to become a leading retail payment solution. Analysts believe that PayPal’s extensive relations with banks and payment processors will allow it to easily transition to the world of retail.
