4 Ways Facial Recognition Technology: Biometric technology has been there for years and advancing with every passing day. Whenever we hear word biometric the first thing that comes to mind is fingerprints. However, fingerprints scanning isn’t the only thing that falls under the category of biometric. Multiple organizations are exploring this technology through voice recognition, retina scanning, and facial recognition.
Facial Recognition Technology
Face biometrics is the most advanced form being used by various organizations and industries. Due to its huge demand, the facial recognition market is expected to grow $8.93 billion by the end of the year 2022, at a CAGR of 19.68% – as per Market Research Future Report.
Apart from other industries, face verification is tremendously shaping the retailing industry. From securing with facial recognition technology the business processes to enhancing customer experience facial recognition systems are benefiting the industry.
4 Ways Facial Recognition is shaping the retail industry
Here are some ways which clearly depict how facial recognition is revolutionizing the retail sector.
Secure and Convenient Customer Base
Whether it’s about physical stores or e-commerce sites, pocket pickers and shoplifters are always there. In physical shops, though owners are hiring security professionals to catch shoplifters, it’s not possible to keep an eye on every customer. Moreover, it is not a reliable solution. With the facial recognition system, shoplifters and troublemakers are easily identified at the entrance triggering the security.
While in the case of e-commerce sites, facial recognition online authenticates the real-identity of customers. Online platforms have this limitation that they provide the users with the opportunity to stay anonymous. One can create an account by providing fake credentials. Digital face identification online facilitates e-shops to onboard secure and real customers. Having real customers with verified identities automatically reduces e-commerce fraud.
With the world moving towards digitization, the trend of online shopping is rapidly increasing. More online customers mean more data and more accounts to exploit. This has paved new roads for fraudsters to make extra cash. In digital platforms, identity theft and account takeover fraud are quite prevalent. The reason is the inefficient authentication checks.
Most e-commerce sites still rely on traditional authentication checks; i.e. username and passwords to verify the users. But the question is how you can ensure that the credentials are entered by the authorized customers only? Since the technology and phishing attacks have made it convenient for the scammers to steal user credentials. Incorporating the face verification not only verifies the identity of the user but also ensures that the user is present at the time of verification. This helps e-commerce businesses to fight fraud.
Combatting False Chargebacks
With the account takeover and card-not-present fraud increasing, businesses are burdened with fraudulent and false chargebacks. Every year, e-commerce sites lose billions of dollars due to chargebacks. Most of the time, fraudsters make fraudulent purchases from a user’s account which leads to chargebacks. In fact, sometimes the users themselves make purchases but falsely claims that their card has been misused, just to get free products.
Whatever the scenario is, the business has to suffer the loss unless it provides strong evidence. Facial recognition efficiently facilitates the business in both scenarios. With the real-time verification at the time of checkout, the payment can be authorized. In case if the user fails to verify his identity the transaction would be automatically rejected. Moreover, the business can have video proof of verification against false chargeback claims.
Enhanced Customer Experience
Facial recognition technology is helping retail businesses to enhance their customer experience. In physical stores, the Identity Proofing technology is helping the staff to identify their regular customers and give them personalized suggestions.