- Email: [email protected]
Smart shopping from Pay By Touch
NEWS
Copyright Notice This newsletter and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Permissions may be sought directly from Elsevier Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; tel: +44 (0)1865 843830, fax: +44 (0)1865 853333, e-mail: [email protected]. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.com), selecting first ‘Support and contact’, then ‘Copyright and permission’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc, 222 Rosewood Drive, Danvers, MA 01923, USA; tel: 978 7508400, fax: +1 978 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; tel: +44 (0) 207 436 5931; fax: +44 (0) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02265 Printed by Mayfield Press (Oxford) Ltd.
iris recognition
Buoyant iris recognition market says Frost
Smart shopping from Pay By Touch
The iris recognition industry looks set to blossom over the next six years according to the findings of a new study. Increasing global security in combination with the mounting need for 1:N authentication has enabled iris recognition technology to gain a strong foothold, said analyst group Frost & Sullivan. The research firm’s new analysis into iris recognition reveals that the market earned revenues of US$31.4 million in 2005 and predicts it will reach US$313.3 million by 2013. Wider deployment of iris recognition technologies is expected to result in a fall in prices, Frost claims. Furthermore, prices of cameras have been decreasing following the emergence of smaller cameras with higher processing speeds. Another factor promoting iris recognition technology is end-user preference, according to Frost, as it is viewed as non-intrusive and more hygienic due to its non-contact nature. “One of the most important events to occur in the iris recognition biometric market to date is the expiration of the Flom Patent. This has encouraged new entrants into the market,” says Frost & Sullivan analyst Sapna Capoor. “High accuracy levels for one-to-many authentication for large-scale applications provide iris recognition technologies a distinct competitive advantage, in particular in the government sphere.” Frost says that the increasing need for tighter border and immigration control throughout the world, and the realization of projects such as expedited passenger processing globally, should help spur on revenue growth. While Europe currently dominates the global iris recognition market, increased implementation in North America is likely to change market leadership dynamics. However, the Middle East and Asia Pacific regions are also fast catching up to ensure a positive outlook for this market. According to Capoor, a key project based on government subsidies, conducted in Andhra Pradesh, India, has set the precedence for the adoption of iris technology for government and law enforcement applications. “The aim of the project is to use iris recognition biometrics to control and manage the distribution of subsidized food and affordable housing to eligible individuals.”
Pay By Touch, a provider of biometric payment solutions for the retail sector, has launched a service that combines its biometric technologies and its data-driven marketing services to provide a fully-personalised experience for shoppers in retail environments. The SmartShop solution gives shoppers customised offers on the products they buy most when they enter the store (before they shop). It provides merchants an opportunity to deliver the right offer to the right shopper at the right time. According to Pay By Touch, research shows that 70% of buying decisions are made in store, and that less than one percent of grocery store coupons are ever redeemed. As a result, millions of marketing dollars are wasted every year. SmartShop provides shoppers with highly relevant offers and saves them from hours of sorting through mass media and clipping coupons. The system works in a number of steps: • When shoppers enter the store, they scan their finger at the SmartShop kiosk to get personalized offers based on their purchase history. • Shoppers receive an 8 1/2 x 11 print out with 12 to 16 customized offers for the products they buy most, and then head into the aisles to shop. • Shoppers scan their finger again at check-out to automatically redeem their offers. They do not need to bring the print out; no paper coupons are required. Green Hills Market of Syracuse, New York, has already tested the SmartShop service. According to Gary Hawkins, CEO, Hawkins Strategic and Proprietor of Green Hills Market: “The SmartShop service has been extremely popular, and shopper participation is already impacting 50% of store revenue. We have seen offer redemption rates exceeding 20%.” Of the customers enrolled in SmartShop, who also shopped last year during the same period, their shopping visits have increased by 10% per week. SmartShop provides merchants with customerbased metrics and accurate data that improves the efficacy of marketing efforts. There is a Web-based management system for algorithmic campaign creation and real- time targeting. The targeting engine also ‘learns’ from each shopping trip to generate the next set of rewards. It provides robust analytics to make reporting and account settlement easy and accurate. Pay By Touch has been developing and acquiring personalised marketing technologies since early 2005 when it acquired 7th Street Software and Convena - two loyalty technology providers - and
Contact: Chiara Carella at Frost, Tel: +44 20 7343 8314, email: [email protected] 2
retail
Biometric Technology Today • January 2007
NEWS Capture Resource, which offers turnkey solutions for card-based loyalty programs. The final building block for SmartShop came through Pay By Touch’s acquisition of technology partner, S&H Solutions in December, 2006. Contact: Sarah Cole at Pay By Touch, Tel: +1 415 371 5620, Email: [email protected]
survey
Yes to biometrics in government says survey Eighty-two percent of American citizens support the use of biometrics on passports, according to a recent survey. Meanwhile, threequarters of Americans support the addition of biometric information to driver’s licences and nearly as many (72.6%) support adding it to social security cards. The survey was conducted by TRUSTe, an online privacy certification and seal program, and market information group TNS. Other findings included the fact that more than half (52%) of respondents agreed with the statement that “it will make it much harder for terrorists to operate within the US with the use of biometrics to establish the identity of Americans.” Conducted in September 2006, the survey suggests that Americans are willing to forego some personal privacy and anticipate misuse of the information in exchange for security. Fifty-three percent of respondents agreed with the statement that the use of biometrics “will greatly reduce personal privacy because the government will be able to track your movements”. Meanwhile, 60% of respondents agreed that “there is a high potential for the government to misuse the information.” But Americans seemed unsure as to how effective biometrics are in combating identity theft. More than two-thirds of Americans (68%) believe that adding biometric identifiers to ID documents will make it much more difficult for thieves to steal their identities but a nearly identical proportion (67%) think that “criminals will find a way around the technology.” Seventy percent of respondents had heard of biometrics prior to being surveyed. According to Fran Maier, executive director and president, TRUSTe: “The survey results seem to indicate that in dealing with government use of biometric data, most people will tolerate a decrease in personal privacy to gain increased security in the form of physical safety,” said “This doesn’t seem to translate to the retail sphere where consumers appear to be more cautious about giving away their personally identifiable information. At TRUSTe, we believe the retail sector can build trust in the use of biometrics by Biometric Technology Today • January 2007
promoting privacy through informed choice about the way that consumers’ information is going to be used.” Retail identification Three out of five Americans support adding biometric data to credit cards (64%) and debit cards (62%), but are much less likely to want that information on a retail store loyalty card (27%). This corresponds to other findings in the survey that 76% of respondents trusted banks and financial institutions “always” or “most of the time” as compared to 41% of respondents trusting retail stores “always” or “most of the time”. The survey revealed that consumers don’t trust systems that use biometric identification as a payment method. Less than two percent of respondents have used a fingerprint payment system and 32% say that they do not trust retail stores with this information. Only 23 percent of respondents expressed a desire to use this kind of payment system. The survey polled 1,025 US consumers between 25 September and 29 September 2006.
border control
Pakistan implements biometric system on Afghan border In a bid to strengthen defences against militants Pakistan has implemented a biometric-based border control system at the Bab-e-Dosti crossing point into Afghanistan’s southern Kandahar province. It will check the identity of travellers against watch lists of wanted terrorists and criminals. The Border Control System was inaugurated by Pakistan interior minister Aftab Khan Sherpao and dignitaries from the Federal Investigation Agency (FIA) and National Database Registration Authority (NADRA). After it was inaugurated, some 40 people were screened through the system, which according to local reports, records a person’s fingerprints, iris or facial pattern, for identification. Pakistani authorities will issue biometric “border passes” to residents of Chaman and the surrounding Qila Abdullah district, to help them travel to Afghanistan after being identified through the system. Pakistan also said it will complete fencing in other parts of its border with Afghanistan by July 2007 to prevent cross border infiltration of Taliban militants.
product news • IDSoftware has released a fingerprint identification that is designed to positively identify prison inmates in an effort to prevent them from being wrongly released. The PrintSearch module scans and matches up to 10 prints of an inmate pending release to ensure the correct inmate is identified and that there are no additional, outstanding arrest warrants for that inmate. The company has historically focused on biometric identification upon inmate intake, but an increase in the number of wrongly released inmates across the country has prompted the move. • Neurotechnologija has announced the availability of two biometric embedded development kits (EDK): FaceCell, the company’s first EDK for development of facial recognition applications on embedded devices and FingerCell 2.0, a new version of its EDK for embedded fingerprint recognition. While developers can use either FaceCell or FingerCell independently, the two algorithms also have been developed to work seamlessly together using the same interface, enabling the creation of multibiometric embedded applications that run on a variety of systems and compact or mobile devices. Both FaceCell and FingerCell 2.0 run on the Windows CE, Windows Mobile and ARM Linux operating systems. • Fujitsu Computer Products of America and Softex Incorporated have announced a solution combining the Fujitsu PalmSecure biometric authentication device and Softex’s OmniPass Client and Enterprise Edition security software. The collaboration between the two companies, which was first announced in September 2006, will provide a combination of biometric authentication tools for login security, access management and data protection for both client and server environments.
3
Copyright Notice This newsletter and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Permissions may be sought directly from Elsevier Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; tel: +44 (0)1865 843830, fax: +44 (0)1865 853333, e-mail: [email protected]. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.com), selecting first ‘Support and contact’, then ‘Copyright and permission’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc, 222 Rosewood Drive, Danvers, MA 01923, USA; tel: 978 7508400, fax: +1 978 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; tel: +44 (0) 207 436 5931; fax: +44 (0) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02265 Printed by Mayfield Press (Oxford) Ltd.
iris recognition
Buoyant iris recognition market says Frost
Smart shopping from Pay By Touch
The iris recognition industry looks set to blossom over the next six years according to the findings of a new study. Increasing global security in combination with the mounting need for 1:N authentication has enabled iris recognition technology to gain a strong foothold, said analyst group Frost & Sullivan. The research firm’s new analysis into iris recognition reveals that the market earned revenues of US$31.4 million in 2005 and predicts it will reach US$313.3 million by 2013. Wider deployment of iris recognition technologies is expected to result in a fall in prices, Frost claims. Furthermore, prices of cameras have been decreasing following the emergence of smaller cameras with higher processing speeds. Another factor promoting iris recognition technology is end-user preference, according to Frost, as it is viewed as non-intrusive and more hygienic due to its non-contact nature. “One of the most important events to occur in the iris recognition biometric market to date is the expiration of the Flom Patent. This has encouraged new entrants into the market,” says Frost & Sullivan analyst Sapna Capoor. “High accuracy levels for one-to-many authentication for large-scale applications provide iris recognition technologies a distinct competitive advantage, in particular in the government sphere.” Frost says that the increasing need for tighter border and immigration control throughout the world, and the realization of projects such as expedited passenger processing globally, should help spur on revenue growth. While Europe currently dominates the global iris recognition market, increased implementation in North America is likely to change market leadership dynamics. However, the Middle East and Asia Pacific regions are also fast catching up to ensure a positive outlook for this market. According to Capoor, a key project based on government subsidies, conducted in Andhra Pradesh, India, has set the precedence for the adoption of iris technology for government and law enforcement applications. “The aim of the project is to use iris recognition biometrics to control and manage the distribution of subsidized food and affordable housing to eligible individuals.”
Pay By Touch, a provider of biometric payment solutions for the retail sector, has launched a service that combines its biometric technologies and its data-driven marketing services to provide a fully-personalised experience for shoppers in retail environments. The SmartShop solution gives shoppers customised offers on the products they buy most when they enter the store (before they shop). It provides merchants an opportunity to deliver the right offer to the right shopper at the right time. According to Pay By Touch, research shows that 70% of buying decisions are made in store, and that less than one percent of grocery store coupons are ever redeemed. As a result, millions of marketing dollars are wasted every year. SmartShop provides shoppers with highly relevant offers and saves them from hours of sorting through mass media and clipping coupons. The system works in a number of steps: • When shoppers enter the store, they scan their finger at the SmartShop kiosk to get personalized offers based on their purchase history. • Shoppers receive an 8 1/2 x 11 print out with 12 to 16 customized offers for the products they buy most, and then head into the aisles to shop. • Shoppers scan their finger again at check-out to automatically redeem their offers. They do not need to bring the print out; no paper coupons are required. Green Hills Market of Syracuse, New York, has already tested the SmartShop service. According to Gary Hawkins, CEO, Hawkins Strategic and Proprietor of Green Hills Market: “The SmartShop service has been extremely popular, and shopper participation is already impacting 50% of store revenue. We have seen offer redemption rates exceeding 20%.” Of the customers enrolled in SmartShop, who also shopped last year during the same period, their shopping visits have increased by 10% per week. SmartShop provides merchants with customerbased metrics and accurate data that improves the efficacy of marketing efforts. There is a Web-based management system for algorithmic campaign creation and real- time targeting. The targeting engine also ‘learns’ from each shopping trip to generate the next set of rewards. It provides robust analytics to make reporting and account settlement easy and accurate. Pay By Touch has been developing and acquiring personalised marketing technologies since early 2005 when it acquired 7th Street Software and Convena - two loyalty technology providers - and
Contact: Chiara Carella at Frost, Tel: +44 20 7343 8314, email: [email protected] 2
retail
Biometric Technology Today • January 2007
NEWS Capture Resource, which offers turnkey solutions for card-based loyalty programs. The final building block for SmartShop came through Pay By Touch’s acquisition of technology partner, S&H Solutions in December, 2006. Contact: Sarah Cole at Pay By Touch, Tel: +1 415 371 5620, Email: [email protected]
survey
Yes to biometrics in government says survey Eighty-two percent of American citizens support the use of biometrics on passports, according to a recent survey. Meanwhile, threequarters of Americans support the addition of biometric information to driver’s licences and nearly as many (72.6%) support adding it to social security cards. The survey was conducted by TRUSTe, an online privacy certification and seal program, and market information group TNS. Other findings included the fact that more than half (52%) of respondents agreed with the statement that “it will make it much harder for terrorists to operate within the US with the use of biometrics to establish the identity of Americans.” Conducted in September 2006, the survey suggests that Americans are willing to forego some personal privacy and anticipate misuse of the information in exchange for security. Fifty-three percent of respondents agreed with the statement that the use of biometrics “will greatly reduce personal privacy because the government will be able to track your movements”. Meanwhile, 60% of respondents agreed that “there is a high potential for the government to misuse the information.” But Americans seemed unsure as to how effective biometrics are in combating identity theft. More than two-thirds of Americans (68%) believe that adding biometric identifiers to ID documents will make it much more difficult for thieves to steal their identities but a nearly identical proportion (67%) think that “criminals will find a way around the technology.” Seventy percent of respondents had heard of biometrics prior to being surveyed. According to Fran Maier, executive director and president, TRUSTe: “The survey results seem to indicate that in dealing with government use of biometric data, most people will tolerate a decrease in personal privacy to gain increased security in the form of physical safety,” said “This doesn’t seem to translate to the retail sphere where consumers appear to be more cautious about giving away their personally identifiable information. At TRUSTe, we believe the retail sector can build trust in the use of biometrics by Biometric Technology Today • January 2007
promoting privacy through informed choice about the way that consumers’ information is going to be used.” Retail identification Three out of five Americans support adding biometric data to credit cards (64%) and debit cards (62%), but are much less likely to want that information on a retail store loyalty card (27%). This corresponds to other findings in the survey that 76% of respondents trusted banks and financial institutions “always” or “most of the time” as compared to 41% of respondents trusting retail stores “always” or “most of the time”. The survey revealed that consumers don’t trust systems that use biometric identification as a payment method. Less than two percent of respondents have used a fingerprint payment system and 32% say that they do not trust retail stores with this information. Only 23 percent of respondents expressed a desire to use this kind of payment system. The survey polled 1,025 US consumers between 25 September and 29 September 2006.
border control
Pakistan implements biometric system on Afghan border In a bid to strengthen defences against militants Pakistan has implemented a biometric-based border control system at the Bab-e-Dosti crossing point into Afghanistan’s southern Kandahar province. It will check the identity of travellers against watch lists of wanted terrorists and criminals. The Border Control System was inaugurated by Pakistan interior minister Aftab Khan Sherpao and dignitaries from the Federal Investigation Agency (FIA) and National Database Registration Authority (NADRA). After it was inaugurated, some 40 people were screened through the system, which according to local reports, records a person’s fingerprints, iris or facial pattern, for identification. Pakistani authorities will issue biometric “border passes” to residents of Chaman and the surrounding Qila Abdullah district, to help them travel to Afghanistan after being identified through the system. Pakistan also said it will complete fencing in other parts of its border with Afghanistan by July 2007 to prevent cross border infiltration of Taliban militants.
product news • IDSoftware has released a fingerprint identification that is designed to positively identify prison inmates in an effort to prevent them from being wrongly released. The PrintSearch module scans and matches up to 10 prints of an inmate pending release to ensure the correct inmate is identified and that there are no additional, outstanding arrest warrants for that inmate. The company has historically focused on biometric identification upon inmate intake, but an increase in the number of wrongly released inmates across the country has prompted the move. • Neurotechnologija has announced the availability of two biometric embedded development kits (EDK): FaceCell, the company’s first EDK for development of facial recognition applications on embedded devices and FingerCell 2.0, a new version of its EDK for embedded fingerprint recognition. While developers can use either FaceCell or FingerCell independently, the two algorithms also have been developed to work seamlessly together using the same interface, enabling the creation of multibiometric embedded applications that run on a variety of systems and compact or mobile devices. Both FaceCell and FingerCell 2.0 run on the Windows CE, Windows Mobile and ARM Linux operating systems. • Fujitsu Computer Products of America and Softex Incorporated have announced a solution combining the Fujitsu PalmSecure biometric authentication device and Softex’s OmniPass Client and Enterprise Edition security software. The collaboration between the two companies, which was first announced in September 2006, will provide a combination of biometric authentication tools for login security, access management and data protection for both client and server environments.
3