Visa Inc. introduced a new specification to use biometrics with chip card transactions. The specification can enable palm, voice, iris, or facial biometrics. This first-of-its-kind technology framework is designed to work with the EMV® (Europay, MasterCard, Visa) chip industry standard to help ensure open, globally interoperable solutions.
Biometric verification is intended to prevent fraud as well as make it easier to pay securely. The architecture Visa has designed enables fingerprints to be securely accepted by a biometric reader, encrypted, and then validated. The specification supports “match-on-card” authentication where the biometric is validated by the EMV chip card and never exposed or stored in any central databases. Issuers can optionally validate the biometric data within their secure systems for transactions occurring in their own environments, such as their own ATMs.
„Because Visa’s design is built on the EMV chip standard, biometric cardholder verification can be seamlessly integrated with the technology used by 3.3 billion chip cards around the world. Financial institutions, solution providers, and others in the payments ecosystem can rely on an interoperable and consistent infrastructure for supporting biometrics.”, according to the press release.
“There is increasing demand for biometrics as a more convenient and secure alternative to signatures or PINs, especially as biometrics technologies have become more reliable and available,” said Mark Nelsen, senior vice president of Risk Products and Business Intelligence, Visa Inc. “However, to support wide adoption, it is equally important that solutions are scalable and based on open standards. Building on the EMV chip standard provides a common, interoperable foundation, as well as encourages innovation in cutting-edge biometric solutions.”
Absa Bank, a wholly-owned subsidiary of Barclays Africa Group, will be the first to use Visa’s specification to develop a proof of concept trial beginning this fall. Cardholders will use fingerprint readers at select Absa-owned ATMs in lieu of a PIN to complete transactions. In order to prevent potential fraud as well as encourage easier access to banking, there is strong interest in biometric solutions in South Africa and other developing countries where banking and electronic payments may still be nascent.
Visa will offer to contribute the technology to EMVCo, the global technical body that manages the EMV® Specifications, to further develop and administer the standard for the benefit of the entire payment industry.
„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”