Automatic Merchandiser - 28

Mobile and web apps, geolocation
and PIN codes are lower cost technologies that can save time in vending
operations, he said.
"Brands and retailers that are
trying to add that edge often already
have some existing app or experience
in their stores that they can integrate
to some biometric system," he added.
"By far the biggest challenge with
biometrics is the barrier to opt-in. It's
easy to authenticate once someone is in
the system, but getting them into the
system is a challenge. Businesses have
enough trouble getting consumers to
download a mobile app."
He said that because of the lack
of consumer adoption operators see
limited increase in sales, which is vastly
outweighed by the cost of biometrics.
"From a consumer perspective it
is yet to be more convenient because
of the barrier to opt in, which means
the rollout of the technology is slow,
which means that the experience is
usually not synonymous with the
technology just yet because it's not
everywhere," he added.
Smith said that if a large-scale
operator took the risk of adopting
biometrics across their operations, that
would be a more successful boost of

the use biometrics in the industry than
if a small operator did so. Biometrics
would also be more successful as a
payment method if the operator were
to provide consumers with a special
benefit, like a loyalty program.
"If someone were to 'try' this in just
a handful of locations, it is destined to
fail because it is not going to change
consumer behavior. If they can roll
something out on a national scale, then
it has a chance of gaining traction,"
he said. "And that's the fine balance.
The technology needs to be tested on
a small scale because of the cost of
a national rollout. But it needs to be
rolled out nationally to create a change
in behavior. It is difficult for anyone
to do unless they have the budget, the
desire and the critical mass."
SECURITY CONCERNS

Another aspect of biometrics that
necessitates caution but can also benefit
operators is the security of this private
information. Operators can build their
own databases or pay for access to
existing databases, Perkins said.
Privacy acts, including California's CCPA and Europe's GDPR, have
indicated concerns over the use and
sharing of personally identifiable information, Smith noted.
To lower the risks and
increase customers' comfort,
operators can limit storage
of biometrics data to the
individual vending machine
or micro market kiosk,
Kasavana said. It's also critical to be transparent about
method and duration of data
storage with customers.
"Operators must first
Swyft automated retail stores
use computer vision, and
optionally all other forms of
biometric readers to validate
consumer profiles and
authorize store operators.
Swyft

28

Automatic Merchandiser * April 2020

365 Retail Markets Gen3 Kiosk
365 Retail Markets

gain customer agreement by providing a digital or printed document that
enables customers to opt in," he said.
"This is part of the reason that a closed
venue with a restricted population
works most effectively as the customers
have agreed to actively participate in a
biometric data collection for the sole
purpose of conducting point of sale
transactions."
Operators need to understand the
requirements involved in acquiring
customer permission, including providing a statement of use, where data
will be stored (which indicates the level
of exposure) and how it will be deleted
at the end of a stated term or upon customer opt out, Kasavana explained.
Kolpasky said that biometrics
technology can also be a sales tool as
it encourages the consumer's familiarity with a micro market kiosk, which
increases their likelihood of using it.
"Consumers who opt to use biometrics as an account identifier really
create the most streamlined checkout
process for themselves, cutting out
potential barriers to not being able to
finalize a transaction. We hope they
always have their fingers with them,"
he added.
It also allows operators to offer a
high tech, highly secure solution to
their users.
"The capturing and storage of the
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