Biometrics
The Bank of Korea released a report on the popularization of new types of e-payment services on April 29. According to the report, the central bank is going to set up standards for biometric personal identification with the Committee on Financial Informatization Promotion (CFIP).
The CFIP is planning to come up with the technical standards before the end of the first half of this year, and then test such services in the latter half with domestic commercial banks. The biometric personal identification is expected to be adopted by the 17 commercial banks in Korea next year, once the security of the technology is assured.
“Some banks have already introduced fingerprint recognition, but the technique has been rather limited due to the high costs,” the Bank of Korea explained, adding, “These days, the focus is shifting to vein and iris recognition, and many ATMs outside of Korea allow cash withdrawal based on the biometric information in users’ veins in their fingers, palms, etc.”
The report divided e-payment services into five categories including SNS-based ones, mobile cards, and e-wallets, and mentioned their similarity to existing services, security concerns, conflicting interests of industries and regulations as the factors limiting their popularization. Still, it added that an increasing number of financial and non-financial companies would join the trend, as the government is trying to eliminate the regulations.