Report: Wal-Mart, Costco considering biometric payment systems

According to a study by an analyst at financial firm Sanford Bernstein, both Wal-Mart and Costco are "looking ... closely" at biometric checkout systems, which would allow consumers to pay via finger-scan (neither company would comment on the report). To use the system, customers would register at an in-store kiosk, where they would provide credit-card information that would be attached to a fingerprint. At checkout, the customer would place their finger on a scanner, and the appropriate credit info would be pulled up. According to the study, biometric checkouts -- which are already in use in branches of some supermarket chains, including Albertson's and Piggly Wiggly -- could save Wal-Mart as much as 20% in processing costs. Of course, privacy advocates are likely to balk at providing major retailers with fingerprints, but we sort of assume that, as big as it is, Wal-Mart's already got the ability to collect any data that they want, and withholding our prints isn't going to change that.

[Via TechDirt]

[Jim @ Jan 25th 2006 5:05PM]

cosTco

[waffffffle @ Jan 25th 2006 5:08PM]

Costco has a T in it. Cosco is a different company.

[gimps @ Jan 25th 2006 5:09PM]

I believe it is spelled Costco, without the "t" it would be the container company.

[Pal @ Jan 25th 2006 5:11PM]

What you meant to say was...Costco.

[Josh @ Jan 25th 2006 5:18PM]

I live in the Milwaukee, WI area and I work in downtown Milwaukee. Theres a Pick n' Save concept grocery store called Metro Market that has had a biometric system in place since January of 2005. So, this is nothing new to me.

[Nullness @ Jan 25th 2006 5:23PM]

Geez, I already move my wallet from my back to my front pocket when I enter a Wal-mart, now I have to worry about having my fingers clipped off in the parking lot to pay for someone's DingDong addiction? No thanks.

[Marc @ Jan 25th 2006 5:27PM]

Nooo, the people who tend to go to the walmart in my area aren't the kind of people you want to share finger-grease with.

[Barbara @ Jan 25th 2006 5:39PM]

I feel like I work for the anti christ It is already feeling like H**l

[djbizze @ Jan 25th 2006 5:46PM]

I was gonna harp on the Costco/Cosco typo, but that's already been done.

I dunno about you, but I sure don't want Wal*Mart having my fingerprints on file. They're already RFID-ing our privacy away.

[Lectoid @ Jan 25th 2006 5:46PM]

You can have my fingerprint when you peel it off of my cold dead finger.

[Justin Lilak @ Jan 25th 2006 5:55PM]

It will only be a few months before the devices no longer work due to abuse, like all POS systems.

[Barbara @ Jan 25th 2006 6:02PM]

some one will hack it, if it deals digits and computers there is a hacker out there somewhere....man instead robbing with guns we will now have to face the hathet man

[Special_K @ Jan 25th 2006 6:13PM]

I see no problem with walmart having my fingerprints on file, what are they gonna do with them? Honestly, the way people are freaked out by biometrics is completely misguided. If you ask me, everyone should have their fingerprints, DNA, voiceprint and other biometric data put on file when they turn 18. I figure, the ones who oppose it probably have something to hide. With tight legislation in place, I doubt it'd be a problem. (I speak about all of this from a Canadian perspective, you Americans might wanna watch what Uncle Sam is up to. *cough* NSA *cough*

[Pal @ Jan 25th 2006 6:17PM]

Wouldn't be a bad system if they required a quick finger scan, then a signature or the PIN number for the associated credit card. That way you won't have to worry about any dismembering :)

[Bryan @ Jan 25th 2006 6:34PM]

I have a tough time as it is touching the doorknobs on the bathroom stalls...I'm REALLY not going to want to touch a finger scanner in which hundreds of booger picking / smearing morons have touched before me.

No thank you!!!

[Walmart World @ Jan 25th 2006 6:43PM]

Walmart sucks....

[Jarrod @ Jan 25th 2006 6:44PM]

Special K,

That is one of the most bizarre and misguided things I've ever read. Go watch or read 1984 and come back and we'll talk.

[XGM @ Jan 25th 2006 7:13PM]

Well with the biometrick hack ive seen + tried its not that hard to get someones else fingerpring to pass trough. Just use 2 tellow gummy bears,melt em and press down on the reader a few times and itll work. Anyways more on this, well since i dont go to walmart to buy their useless crap i dont rellt care at all.

[Beowulf @ Jan 25th 2006 7:21PM]

Do those things come built with a sani-wipe dispensor?

[evo @ Jan 25th 2006 7:35PM]

Um, people, can I remind you that Costco already tracks everything you buy, how you pay, etc. through their membership card, which if you recall, has your picture on it. They could just as easily use facial recognition. What's the difference whether they store a picture of your face or your finger?

[Barbara @ Jan 25th 2006 8:00PM]

Wow getting a lot of interesting comments here...for the ones who dont worry about it maybe they are ok because they know what the sign of the times are and then again maybe they dont..either way it goes they will probably have their way no matter what...you would have to work for the company to see where they really come from, any company...for that matter...walmart is so rich why are they worried about cutting cost...it goes into corporate offices pockets and not their help...not sure about costco and their motive maybe it is to keep up with sams club...another walmart company...and by the way sams has been tracking your purchases as well as walmart....

[munboy @ Jan 25th 2006 8:24PM]

Local grocery store already does this. It is a Cub foods. Havn't tried it yet, but I will be. Goes hand-in-hand with the self-checkout system Gotta love NCR's innovation...

[Ken @ Jan 25th 2006 9:21PM]

Walmart should focus on getting some better health benefits for it's employees.

[John @ Jan 25th 2006 9:46PM]

It seems that PayPass or ExpressPay would be just as easy, just as fast, and way more secure. It would also minimize the privacy concerns.

[April @ Jan 25th 2006 10:55PM]

Seems like everyone is very polarized and some people are just off on their own tangent...? I think it is good to look at both sides of the case, decide what you want and then choose for yourself if you would support such an action by shopping (or not shopping) at the stores that are offering this service. If you don't agree with it, try to help by coming up with alternative ideas not just complaining about it.

[Computer Tech Support @ Jan 26th 2006 12:14AM]

I bet they'll use that 20% in savings to maybe give their employees better healthcare (or any for that matter) and stop costing the United States billions of dollars in tax money paying for their employee's health care....


...nah I guess not. They'll never get my finger print because I choose not to support companies such as WalMart.

[Special_K @ Jan 26th 2006 2:04AM]

Jarrod: Thank you for your advice; too bad it came about 4 years too late. In my country, we have a system of checks and balances that makes sure that the government is unable to regulate our thoughts and track our every move. It starts with a 'd', rhymes with femocracy? That was one key thing Oceania didn't have going for it. You can tell it's a sad state of affairs when a country can't trust their democratically elected leaders to handle sensitive information with discretion. The government already knows where I live, what I look like, what medical services I recieve, what organizations I give money to, if I use public transit, who I work for, what kind of car I drive (and its license plate #), what school I attend...etc. We trust them with this detailed information about our lives, readily giving it to them on our T-4s (or whatever form you guys fill out south of the 49th). Why, then, is it such a huge leap to tell them our fingerprints and DNA? Both of those things have such limitted uses; and even then, they'd only be able to be used if there were good reason (say, someone got murdered and my prints were all over them). This distrust in gov't is terrible; why is everyone so darn suspicious? It's not like the PM is sitting in 24 Sussex Dr. planning to investigate me for thoughtcrime. There's no Room 101 in Canada. You should be worried about the state of affairs in the DPRK and Myanmar; that's where disent can cost you trip to the firing range, and your family a few cents for the bullet.

[Peter @ Jan 26th 2006 2:14AM]

Our website is kinda hokey, but the software is very robust and customisable.
-------
Having a bad website is really bad pr for a technology based company,


-------
By the way, Our software doesn't actually store finger prints we scan the finger print to to find important features. we then find polygons that connect those features.
-------
Thats even worse as far as i can see... surely that would make it less accurate...
-------

Peter

[Rusty Shackleford @ Jan 26th 2006 8:11AM]

Alex Jones predicted this a few years ago on his TV show in Austin, and on his website:

www.infowars.com

Alex has a lot of information on there but no specific recommendations on what to do with it. Should we move to Switzerland? Should we load up our basements with Family-Pack MREs and bottled water and ammunition? What, Alex? What do we do now that 1984 is truly upon us? Hope you're reading this because we need your leadership now more than ever.

[Antnee @ Jan 26th 2006 9:49AM]

Are you kidding ... holding back our fingerprints is identity we hold as humans. This is another case for potential disaster, like the Lexus fiasco and losing so many identities and credit information and they are in the business and know about the secuirty controls and such that need to be place in order to prevent ID theft. What a monumentuous mistake it would be for yet another to be independent yet have the ability to be manipulated to produce nothing more than a savings for the copany asking for your business without restitution for the loss and never to be regained finger print. What assurances are these companies going to give the average person that their systems have not in the past nor are they presently being attacked by would be ID thieves? What are the consequences should this happen ... No it is not ok for Lexus to say sorry we did not know. It is a matter of no ramifications for the senior management and thus no rsults producing any more of a secure system than what they had at the time. Is the current wave of companies going to be able to do this any better?

[Tranceglass @ Jan 26th 2006 10:01AM]

I was hoping to see a reference in the comments to that episode of Alias where they cut off the guy's finger in order to gain access to the biometrically protected bomb detonation count down system. Imagine the rash of finger theft if this system goes wide at WalMart!

[airpolgas @ Jan 26th 2006 3:53PM]

In a very general sense, this will be OK to those below 25, maybe 30 - and those that are in this country legally.

[Ken @ Jan 26th 2006 8:06PM]

I work for Sam's and have not heard anything about this, but I don't read all the newsletters, either. We have the new scanners to find any product in the warehouse's exact location using the new RFID system. We don't however have the RF Tags on the products yet. It really does bother me how Sam's and Walmart are manipulating the market with "DO it my way, or hit the Highway" to vendors. But what to do? I don't think I would want to swipe my fingers across that scanner either, especially after that guy just did #2 and didn't wash his hands. Even if they had some sanitary wipes to use afterwords. Then where would the savings be after they have to buy Zillions of wipes. How would the scanners work say if you are a grease monkey or have a blister or cut or scab on that index finger, then you'd be screwed, right?

[Mr. Cloud That's my name @ Jan 29th 2006 2:05AM]

RFID chips in your hand would be the greatest method of paying your dues. Just grab and walk out the store. If the sirens go off then run! lol

I wouldn't want to share finger prints with thousands of other walmart shoppers... Then again we use buggies -_- So it really doesn't make a difference. Let's just bring out the RFID's and get it over with. >_< *hates needles*

[Grover Saunders @ Jan 29th 2006 12:30PM]

Ummm...since the fingerprint just dips back to an existing credit card, how exactly does this save money?

Also, Special K, are you really trying to get high and mighty about Canada's government with right in the middle of your PM essentially getting kicked out of office for gross incompetence? Pot calling kettle, come in kettle....

[Greg McKinney @ Feb 10th 2006 8:37AM]

READ YOUR BIBLE. MARK OF THE BEAST is here!

[Gerald Sheppeard @ Apr 27th 2006 4:01PM]

Let's just hope the preliminary tests fail. I know the KMart in my area removed the self-checkout checkstands before last Christmas.

[Sameha @ Feb 19th 2007 10:26AM]

I think Wal Mart is taking a higher techonlogical postive step by deciding to use fingerprint systems. Biometric devices are making transnational communication much easier, safer and more reliable. Customer service is becoming more efficient through it. Tracking clients is getting faster. For proper customer service and payment facilities one need to ensure smooth management of keeping the customer records. I am a representative of an established research based biometric firm named M2SYS Technology http://www.m2sys.com/
based in Atlanta Georgia. We have provided our fingerprint scanners to numerous POS, super stores and agencies starting from medium to large across various countries, who are now making a very fast and reliable customer payment and customer record service through integrating our secured fingerprint identification system in their POS software. Our’s is a patent-pending fingerprint software solution that can be instantly integrated with a host application, avoiding development burdens associated with a fingerprint SDK. We also offer several off-the-shelf fingerprints software products that are distributed to the end user market through our expanding list of channel partners. I believe to keep up with speed of service and tracking the customers as well as employees in an efficient way, finger print scanners are one of the best solutions.