Hitachi Develops Blockchain-based Fingerprint Payments
The Japanese tech giant, Hitachi has partnered up with a Japanese telecommunications company KDDI, to develop a new blockchain based system for the retail industry that can make shopping easier. Together, the two companies are testing a new system for making payments.
While blockchain is continuously being explored in the retail industry, how Hitachi is using the technology could lead to a shift in the way payments are made. With this new system, customers can make payments just through their fingerprints.
In a press release this week, Hitachi announced that groups from both Hitachi and KDDI are testing the pilot of the platform by using a coupon settlement system in one of KDDI stores. The tests are also being conducted in a local donut shop.
This platform was designed using the Hyperledger Technology. It brings together the company’s biometric verification system and KDDI’s coupon system which enables consumers to conduct a range of transactions and make payments with just their fingerprints.
To be able to use the system, customers need to register their biometrics and coupon credits which will be encrypted and recorded on the blockchain. When the consumer wants to use the coupon at a store, the merchant will verify their identity using the biometrics and matching them with the coupons stored in the system. Once the fingerprint scanner clears the transaction, it is complete.
Hitachi created this platform to be able to verify user identity and maintain a record of coupon usage across stores. The company also highlighted how this system will help make transactions more efficient. Hitachi said,
As a result, users can authenticate themselves by holding the finger on the authentication infrastructure, so it is not necessary to present a coupon at the store, and the coupon can be used even without a smartphone.
While currently only available for coupons, it is possible that this platform will expand to other areas in the retail space as well.
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