China has reportedly released a set of new guidelines for the use of facial recognition payments which aim to reduce risks.
The Payment & Clearing Association of China released the new principles which cover user consent and the collection and storage of biometric data, according to a report from EqualOcean.
Under the new rules, facial recognition data needs to be encrypted and merchants must offer additional payment methods and not just ones powered by facial recognition.
Businesses will be required to create risk provision funds, insurance plans and risk compensation mechanisms to ensure protections for consumers, it said. If consumers do experience any losses, they must provide compensation if they cannot prove the member was responsible for the loss.
Service provides must also establish a consumer compliant handling process and ensure consumers are aware of these departments.
Facial recognition is becoming more prevalent in the market and it is only going to get more so. A recent study from Mordor Intelligence claims that the biometric service is set to grow at a CAGR of 12.5% and will reach a global valuation of $9.06bn by 2024.
One of the key drivers for the adoption of facial recognition is its ability to improve protections for consumers against money laundering.
Copyright © 2020 FinTech Global
Copyright © 2018 RegTech Analyst
