Paying with Your Face: What Will Convince Consumers to Use Facial Recognition Payment Technology?

You've likely unlocked your smartphone or passed airport security using facial recognition, and perhaps even used it for online verification. But are you ready to use your face to buy a cup of coffee? While this technology is not new, its application in payment systems—facial recognition payment technology (FRPT)—is rapidly expanding.

In 2021, around 495 million Chinese consumers used FRPT, and by 2025, financial entities like JPMorgan Chase and Japan's NEC Corporation aim to implement it. However, the question remains if Australian and New Zealand shoppers will embrace this technology similarly.

The Psychology Behind Face Payment

Recent research delves into the psychological factors influencing shoppers to try FRPT, anchored in the basic psychological need theory. This theory posits that a new technology must address three primary needs: autonomy (control over the technology), competence (trust and reliability), and relatedness (familiarity and comfort).

Through 21 in-depth interviews, the study found that providing information, ensuring convenience, building trust, and offering incentives could satisfy these needs and encourage adoption. Participants gained knowledge from various sources like news sites, social media, and the retailer. Convenience, like quick payments, enhanced users' sense of competence. For example, some saw FRPT as potentially faster and more efficient.

Trust was influenced by the retailer's name, reputation, and customer engagement. As one participant stated, trust in brands like Woolworths was higher compared to lesser-known shops. Promotional rewards also boosted autonomy, making participants more inclined to try FRPT.

Barriers to Adoption

Conversely, some factors deterred shoppers from adopting FRPT. These included unfamiliarity with the retailer, satisfaction with current payment methods, lack of assistance, and concerns about overspending. Some users reported skepticism and a preference for existing methods like tapping a card or phone. Trialing FRPT in physical stores appeared preferable due to the presence of supporting staff.

Concerns about unmanaged spending and privacy also surfaced. Although some viewed FRPT as more secure than traditional methods, the risk of data breaches troubled others. As one respondent noted, the potential for leaked biometric data was unsettling.

Addressing Consumer Concerns

Retailers must work to gain consumer trust by highlighting advanced technical measures and collaborating with reputable FRPT developers. In-store signage, promotional materials, and comprehensive staff training can educate customers and emphasize FRPT's convenience and security.

To foster adoption, retailers should provide promotional incentives and possibly introduce alert limits on spending, akin to how credit card purchases have value caps.

Efforts are essential to ease consumer apprehensions and pave the way for the widespread use of facial recognition payment systems. By addressing these psychological needs and concerns, retailers can better position this evolving technology in the market.

Earlier, SSP published a quick guide on maintaining your smartphone.