Pay by Touch snags Citibank Singapore deal
Bank will allow credit card payments by fingerprint; biometric approach a first for Citibank in Asia, and rivals are keeping tabs; registration is easy, but long-term success depends on merchant cooperation
The last time we heard about San Francisco-based Pay by Touch, the biometrics company was preparing to snatch up its main rival — Herndon, Virginia-based BioPay — for $82 million in cash and stock. This was important, not only because it established Pay by Touch as one of the largest providers of biometrics for retail services, but it also ended a lengthy patent battle between the two firms. Now Pay by Touch is in the news again, and it seems the deal with BioPay has paid off. The company’s system will be used by Citibank Singapore to permit credit card holders to make purchases using their fingerprints. “It’s an investment for our future,” said bank executive Anand Cavale.
Singapore is a wealthy city-state of 4.5 million educated citizens, making the credit card industry there extremely competitive. Frequent flier miles, dining points, and other enticements are common, and Citibank sees its biometrics approach as a technology that can lure tech-savvy Singaporeans. Interested residents can register at various local branches, but getting merchants to cooperate, however, may still present a challenge, at least until the technology is more widely accepted. So far, Citibank’s systems are in place only at a few local coffee shops and the popular Zouk nightclub. Nevertheless, Cavale said, “our plans include taking this technology around the region.”
-read more in Sumner Lemon’s IDG News Service report
