In August, Shinhan Face Pay was rolled out in cafeterias, coffee shops, and a convenience store. this payment system is set to be tested at universities. Ryoo with aware of global privacy concerns assures users that the technology doesn’t breach privacy. “Unlike China’s facial recognition system collecting original images, our system only stores key points of images, so it is free from privacy issues,” he said. “Our Face Pay also features age tracing algorithms that means our customers using the system do not have to submit a new photo for 10 years.”
Deviceless payment in Korea by biometric and blockchain
Korea is attempting to become a founder of "deviceless" payment systems. Therefore, the global top-five credit company Shinhan Card, the most extraordinary Korean firm, is seeking blockchain-powered, facial recognition-based, and IoT-based payment systems. Ryoo Tae-hyun who is Shinhan Card director said in an interview for The Korea Times that the plan for the upcoming future is to make traditional approaches obsolete and turn to "plasticless" and deviceless payments. He believes the country will quickly be ahead of the game to the detriment of competing countries such as the US and China if the Korean government is willing to invest in a nationwide infrastructure.
Shinhan Card received a patent for a blockchain-based payment system in Korea after using the technology to establish a credit transaction service. It applied for patents in the US, China, Japan, Vietnam, Indonesia, and the European Union, and will hear the decision in 2020.
“With our system, we provide our customers with cryptocurrencies available at our affiliated stores, in accordance with their credit limits,” Ryoo said. “Cryptocurrencies developed by other blockchain companies can only be used at a limited number of stores. Ours can be used at a wider range of places, because we have served as a platform for our customers and affiliated stores for over the past 30 years.” Ryoo believes a combination of blockchain technology with IoT will help dispose of plastic cards sooner than expected. “We installed our payment module in products from Hyundai Motor and LG Electronics,” he said. "If the nation’s manufacturers pay more attention to cooperation with financial firms, the pace of innovation will be much faster.”
Korea is a true master in tech innovation and adoption. Last year, Korean credit card companies Shinhan, BC, and Hana Card had declared work on a fingerprint-based payment authorization arrangement. Beginning January 2020, travelers to South Korea will use palm vein biometrics for authentication among boarding checks, following a partnership between the Korea Financial Telecommunications and Clearings Institute (KFTC) and the Korea Airports Corporation (KAC).