PayPal and Samsung have extended their collaboration with a new biometric feature that will allow users of the new Galaxy S5 smartphone to use fingerprint authentication for mobile payments with PayPal merchants. PayPal argues that this is a major innovation in m-payment, introducing a new level of convenience for consumers compared to the familiar login-and-password authentication model.
Eden Zoller, principal analyst at Ovum comments:
“We think consumers will be wary and need some convincing due to security concerns. In Ovum’s 2013 Consumer Insights Survey, almost half the survey respondents (49%) ranked lack of security as their priority concern with mobile payments. Consumers already worried about the security of established m-payment mechanisms are likely to view a new technology and process with suspicion.
“On the positive side, Samsung is a hugely popular smartphone brand with global reach, while PayPal is a trusted payments service provider. This is a powerful combination. PayPal stresses that fingerprint authentication is a secure feature based on a FIDO-ready software implementation with all credentials stored remotely in the cloud. PayPal is the first member of the FIDO Alliance to produce a solution of this kind; other members include Google and Microsoft.
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“The PayPal fingerprint authentication feature will go live on the Samsung Galaxy S5 in 26 markets this April. PayPal expects more device manufacturers to adopt the technology going forward.”