(SINGAPORE) Citibank credit card customers who used to pay for purchases with their thumb no longer have that option. Citibank's partner in biometric payment services for its credit and debit card customers - US-based Pay By Touch - announced that they have discontinued all biometric-related services with effect from yesterday because they have gone bankrupt.
This is a global action by Pay By Touch affecting all biometric-related services worldwide, including the One-Touch biometric service for credit card payments in Singapore.
More than 30 merchants offering this service at over 200 retail outlets such as Zouk, epiCentre, Coffee Bean & Tea Leaf and Shaw Theatre will be affected. Citibank has more than 700,000 cards issued in Singapore. Citibank said yesterday: 'The impact on customers is limited. Under one per cent of our average monthly credit card transactions are done via the biometric payment service.'
On its website, Pay By Touch said that it will no longer process biometric transactions on behalf of its merchant customers and consumer membership base, as of March 19. On Dec 14, 2007, the company filed for US bankruptcy protection under Chapter 11. 'As part of the company's restructuring, it was determined that the enterprise could no longer support the biometric authentication and payment system as it currently exists, based on lack of funding and current market conditions,' the website said.
Citibank said that none of their other credit card services or transactions are affected by this action. The bank said that they have already started informing customers and merchant partners of the cessation of the service.
Merchants say they have not incurred any loss as the costs of finger-sensor terminals and broadband connection were borne by Citibank.
'It doesn't really affect business, customers will still shop here,' said Dean Rahim, manager at Gramophone - one of the early adopters of the system. 'It's just that they have to go back to signing for their purchases,' he noted.
Citibank had actively promoted the system, he said. 'It's a pity as Citibank has pumped in resources and it's also a good solution for the rampant card fraud these days.'
All seven Gramophone outlets are equipped with the biometric payment systems and Mr Rahim noted that most of their Citibank customers use it to pay. 'About 5 per cent of transactions a day are done by biometric,' he said.
Despite the discontinuance of the One-Touch biometric payment service, Citibank said that it continues to believe strongly in the future of biometric payment and authentication technology and the enhanced security and convenience it brings to customers. 'Citibank remains committed to investing in innovation and harnessing new technologies to serve our customers better,' it said in a press release yesterday.
Citibank launched the One-Touch biometric payment service for its credit card customers to much fanfare in November 2006. It was the first such offering by a bank anywhere in the world and promised convenience and security.
Biometric payment - which measures unique physical characteristics such as fingerprints to verify identity - eradicates the need for people to present their credit card when paying for purchases. Instead, they simply press their thumb on a biometric scanner at participating merchant outlets. Besides greater payment convenience, consumers enjoy added protection against fraud.
