Paying with your face: ready or not?

Imagine walking into a store, picking up your items and paying just by looking at a screen. This is already a reality in China thanks to facial recognition payment technology, but how do people on the other side of the world feel about it?

A study by researchers from the University of Auckland and Queensland University of Technology explores the factors that could make or break this payment method's success.

Facial recognition payments use biometric data—specifically facial features—to complete transactions. The technology captures your facial image at checkout and links it to your bank account.

For consumers, it can offer convenience and speed. However, the study suggests that widespread adoption faces significant challenges.

The researchers say the success of facial recognition payments hinges not just on the technology itself but on how well it satisfies basic human needs: competence, autonomy, and relatedness.

In other words, for people to embrace this technology, they need to feel confident in using it (competence), in control of their decision to use it (autonomy), and connected or comfortable with the idea (relatedness).

One interesting finding, say the authors, who undertook in-depth interviews with 20 participants, was people’s apprehension regarding overspending and compulsive shopping.

One interviewee said facial recognition payment technology "could be bad because then I've got no way of saying 'I don't have money on me.' That is when you always have an open purse … Yeah, sadly, facial recognition is always there."

The researchers also found that people are more likely to try using their face to pay if they feel it won't be a hassle, and if they haven't had previous negative experiences with similar facial recognition tech.

"Imagine you're in the supermarket looking at the screen to pay, but it's not working, it's not recognising you,” says co-author University of Auckland Associate Professor of Marketing Laszlo Sajtos.

“So, you’re moving your head from side to side, up and down. This can be really embarrassing for some people, and if it happens once, there's less interest in trying again. Some people might lose confidence in the technology altogether.”

The study suggests that retailers need to provide support services—like having staff on hand to assist with any issues during the initial rollout.

Explanatory signage, videos, and prompts to explain retail biometrics' convenience, supported by promotional incentives would also help with the uptake of this new technology, says Sajtos.

The paper also points out that people need to feel in control. If they feel pressured to adopt this kind of payment system, they might push back.

Privacy and security concerns also play a significant role, says senior lecturer Dr Shasha Wang (Queensland University of Technology).

"Some people think they are ok with this technology because they have used facial recognition to unlock their phone or that their face is already on the internet, but when it comes to payments, this is totally different; this is connected to your financial information.

“This means that banks and retailers will have customers’ faces stored in their systems and some people have concerns about this, especially with the rise of deepfakes and other scams."

Brand awareness and trust were also important to those interviewed. People are more likely to try facial recognition payment systems if they are offered by a retailer or bank they trust, says Sajtos.

"This could be a significant hurdle for smaller, less-known businesses."

The study also highlights the importance of social influence. If friends and family are using these systems successfully, others are more likely to give it a go.

“To enhance the persuasiveness of marketing communications, retailers in Australasia should focus on loyal consumers and communicate the latest anti-scam research, privacy policies they have implemented, and the reputable facial payment technology developers or platforms they have utilised," says Dr Wang.

Facial recognition payments have the potential to revolutionise how we pay, but for this technology to take off, Wang and Sajtos say it needs to address the real, psychological needs of its users.