Passwords are a burden. Apps like 1Password simplify the login process, but memorizing random digits and phrases feels outdated. Smartphones have fingerprint scanners and facial recognition, but that's not enough. When will we be able to look back and laugh at passwords like the paper maps we used to keep in our cars?
This is worth discussion because it was just World Password Day, a "holiday" in early May created by Intel Security. It's understandable if you didn't celebrate — the actual date of the "holiday" isn't listed on the official webpage. Sponsors include security companies like 1Password and McAfee. While it's important to optimize your security practices, it could be seen as a holiday celebration for these sponsors and their sales numbers.
It's not just passwords that frustrate modern consumers. There are also PINs, which aren't as burdensome, but still feel antiquated. And signatures don't serve much of a purpose in the digital age, so it's no surprise they're going away soon.
Visa promotes biometric authentication as an alternative to passwords, PINs and signatures. They even have an SDK (software development kit) that allows developers to use their emerging technology. Biometrics refers to body measurements and calculations. Fingerprint scanning and voice recognition are examples of biometric authentication.
Visa conducted a survey with the help of AYTM Market Research in 2017. I spoke to Mark Nelsen, SVP of Risk and Authentication Products at Visa, about the study and what they're working on.
"You know, 86% of consumers really are interested in using Biometrics to verify their identity," Nelsen revealed. Even if the technology is ready, it doesn't mean consumers are prepared to change their habits. Advanced payment methods like Apple Pay and Google Pay don't have widespread adoption in every market.
Nelsen predicts, "In some markets, absolutely, mobile will be the predominant way that you pay, and in other markets, it may take a lot longer." It's generational to some extent. If you grew up paying with cash and credit cards, it's harder to break the habit.
Nelsen says, "There are many ways that you'll be able to pay without using a card. And that is absolutely the future." Some of these emerging technologies are exciting. Given the popularity of virtual assistants, authenticating transactions through voice recognition is appealing.
Visa even released a contactless credit card that allows you to scan your fingerprint at the point of sale. Your fingerprint is validated when it touches the card's scanner. People hold credit cards with their thumbs and forefingers anyway, so it's easy to imagine widespread adoption for the product.
This could be seen as an incremental improvement on yesterday's technology. Nonetheless, it feels like they're retrofitting a horse-drawn carriage with a fuel injection engine. Nelsen insists cards will be around for awhile. It's a reminder that factors like cultural acceptance and regulation can impede adoption.
Malcolm Gladwell famously wrote the book Tipping Point, which examines the psychology behind trends and adoption. In a 2017 interview, Gladwell expressed his ongoing curiosity about the subject. "The first ATM [was introduced] in the [late '60s]. The ATM doesn’t reach maturity until 20 years later or so. Same thing with the telephone, same thing with the fax machine, same thing with the smartphone. You go down the list — it always takes a generation."
Sometimes there are business logistics that keep technology from reaching the mainstream. Back in 2011, Square introduced Square Wallet. It looked promising. The product allowed customers to walk into a coffee shop and charge a drink to their tab without having to pull out their wallet. Their face would pop up on the barista's iPad when their phone automatically connected to the WiFi. Pretty cool, right? Well, it didn't take off, and Square killed the product.
Nelsen argued Square's problem revolved around validation. Square didn't involve the issuing banks at the outset, which left the merchants liable for fraud. Visa loves the idea of a frictionless payment system though. "We're talking about getting the issuer's involved from the beginning. They [would] verify the cardholder when they log in and take a picture of themselves."
Consumer standards for user-experience are high these days. Tech companies hire researchers and designers to optimize customer funnels online. (A funnel is the sequence of steps a user takes to complete a task, often times a purchase.) That's why it's so critical for brick-and-mortar merchants to maximize their real-life experience.
Consumers have to become more comfortable with the technology for widespread adoption. Visa's 2017 survey found that about two-thirds of consumers are aware of biometrics. The problem is that 49% of all the respondents feared the risk of a security leak.
While there will always be potential threats, it's more of an education problem than anything else. Consumers need to understand biometric authentication before we can enjoy a post-password world. Let's hope Visa can have an impact.
