Biometric enables payments with PayPal partnership
PayPal and its partner Samsung announced a collaboration that enables Samsung Galaxy S5 users to login and shop with the swipe of a finger in online, mobile and in-store payments wherever PayPal is accepted.
With FIDO Ready software on the device and the new Samsung Galaxy S5 fingerprint sensor, users can securely and privately communicate between their device and PayPal’s service in the cloud.
Combining FIDO authentication with the biometric feature means users will no longer need to remember passwords or login details when they shop. The fingerprint scanner – embedded on the home button — will also be used to unlock the handset as well as access private data.
The PayPal/Samsung deployment of FIDO authentication relies on a PayPal secure wallet in the cloud. Customers can use their finger to authorize PayPal payments directly from their Samsung Galaxy S5, because the FIDO Ready software on the device communicates between the fingerprint sensor on their device and PayPal’s service in the cloud.
Per FIDO specifications, the only information a user’s device shares with PayPal is a unique encrypted key that allows PayPal to verify the identity of the customer without having to store any biometric information on PayPal servers.
Eden Zoller, principal analyst at Ovum, doesn’t think this will be a draw for consumers as security isn’t a high concern when it comes to mobile payments. “Consumers will be wary and need some convincing due to security concerns,” she says. “Consumers already worried about the security of established m-payment mechanisms are likely to view a new technology and process with suspicion.”
Though the combination of two trusted brands may convince some people.
“This is a powerful combination,” Zoller says “PayPal stresses that fingerprint authentication is a secure feature based on a FIDO-ready software implementation with all credentials stored remotely in the cloud. PayPal is the first member of the FIDO Alliance to produce a solution of this kind.”