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What are the innovative ideas for digital payments?

Digital payment transactions occur over a mobile device, bypassing cash or cards and enabling instant transactions. In a post-Covid world obsessed with eliminating germs, such transactions offer greater convenience and security.

Moreover, these solutions improve financial inclusion and accessibility for people that lack bank accounts or traditional services. Some examples include popular P2P payment apps like Venmo and PayPal.

Iris Scanners

Iris scanners are a type of biometric verification that uses the unique patterns of an individual’s eye to verify their identity. It’s one of the most secure methods of identifying people. Iris scanners are often used in security systems, access control, and biometric ID cards. They can’t be tricked or bypassed like facial recognition or fingerprint scanning, because the iris is permanent and unique to each person.

This type of payment requires no new products from merchants, as it’s built into the mobile payment technology in a consumer’s smartphone. The iris scanner captures an image of the eye, which is then compared to a database. If the match is positive, then the transaction is complete. It’s similar to how peer-to-peer payments work like Venmo and PayPal. However, iris scanners are more secure and faster. This makes them a popular choice for airports and other high-security locations. However, iris scans have been shown to be vulnerable to certain types of attacks.

Facial Recognition

Digital payments are reshaping the financial industry. With solutions like buy now, pay later (BNPL) and contactless payments, companies such as Apple and Google are challenging existing finance industry players.

Facial recognition is also becoming increasingly popular as a new way to conduct digital transactions. It’s currently used by law enforcement to identify suspects, and it can even unlock smartphones and computers.

A few hiccups have plagued facial recognition in the past, but it’s expected to continue its rise as an innovative idea for digital payments. For example, it can’t recognize people wearing COVID-19 masks, but companies are working to fix that.

However, the biggest challenge for facial recognition will be balancing privacy and security. Many consumers have concerns about giving out their faceprints to a company, and they may want to be able to opt out of using the technology. Fortunately, many states are putting regulations in place that ensure the technology is properly vetted before it’s rolled out to consumers.

Palmprint

Digital payments refer to any form of payment that is done electronically and does not involve a physical card. These can include e-wallets, mobile payments, online bank transfers, or even contactless NFC payments using smartphones.

Another innovation in the world of digital payments is palmprint scanning. This biometric technology uses the ridge and valley structures in a person’s palm to identify them. It has many advantages over other biometric technologies, including higher distinctiveness and lower cost.

Moreover, palmprint scanning is relatively easy to implement and does not require specialized equipment. In addition, the technology can be used by almost any type of device. This makes it a popular choice for Point of Sale systems. Several fintech companies have already started testing this technology. For instance, the Indian company Natural Support Consultancy Services Pvt. Ltd. is working on a product called eRupaya, which is a near-field communication (NFC) based prepaid card and Point of Sale solution.

Subcutaneous Implantation

One of the more dystopian solutions imaginable, this involves a chip implant under the skin. A reporter for BuzzFeed went all in on this solution and filmed herself using it, causing a sensation.

The premise is that the implant will allow for the use of mobile payment technologies, but without exposing the user to any public or private data. It will also be able to monitor biological signals like the electrocardiogram (ECG).

This type of medical device is already used in preclinical research. It consists of small rods of polymer compounds that are placed under the skin with a medical device and release their active ingredient over several months, thus replacing recurring tablet intake or recurrent injections. These rods have many fields of application, including ophthalmology, the treatment of opiate dependence and contraception. They can also deliver proprietary test articles or long acting drugs such as leuprorelin and insulin. However, these devices require batteries as their main source of energy and impose complex recharging cycles that require surgery or patient immobilization.