With JPMorgan, Mastercard on board in biometric ‘breakthrough’ year, you may soon start paying with your face

Published

2 years ago

May 20, 2024

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Automated fast food restaurant CaliExpress by Flippy, in Pasadena, Calif., opened in January to considerable hype due to its robot burger makers, but the restaurant launched with another, less heralded innovation: the ability to pay for your meal with your face.

CaliExpress uses a payment system from facial ID tech company PopID. To activate it, users register with a selfie. Then they can opt to be recognized and then PopID’s facial verification confirms the transaction.

It’s not the only fast-food chain to employ the technology. In January, Steak ‘N Shake, a fast-casual restaurant in the Midwest, started installing facial recognition kiosks in its 300 locations for patron check-in. The chain says that using PopID takes two to three seconds compared with a check-in with a QR code or mobile app, which can take up to 20 seconds.

Biometric payment options are becoming more common. Amazon introduced pay-by-palm technology in 2020, and while its cashier-less store experiment has faltered, it installed the tech in 500 of its Whole Foods stores last year. Mastercard, which is working with PopID, launched a pilot for face-based payments in Brazil back in 2022, and it was deemed a success — 76% of pilot participants said they would recommend the technology to a friend. Late last year, Mastercard said it was teaming with NEC to bring its Biometric Checkout Program to the Asia-Pacific region.

“Our focus on biometrics as a secure way to verify identity, replacing the password with the person, is at the heart of our efforts in this area,” said Dennis Gamiello, executive vice president of identity products and innovation at Mastercard. He added that based on positive feedback from the pilot and its research, the checkout technology will come to more new markets later this year.

As stores implement biometric technology for a variety of purposes, from payments to broader anti-theft systems, consumer blowback, and lawsuits, are rising. In March, an Illinois woman sued retailer Target for allegedly illegally collecting and storing her and other customers’ biometric data via facial recognition technology without their consent. Amazon and T-Mobile are also facing legal actions related to biometric technology.

In other countries, most notably China, biometric payment systems are comparatively mature, from visitors to McDonald’s in China being able to use facial recognition technology to pay for their orders, to systems offered by AliPay, which launched biometric payment as far back as 2015 and began testing the technology at KFC locations in China in 2018.

A deal that PopID recently signed with JPMorgan is a sign of things to come in the U.S., said John Miller, PopID CEO, and what he thinks will be a “breakthrough” year for pay-by-face technology.

The consumer case is tied to the growing importance of loyalty programs. Most quick-service restaurants require consumers to provide their loyalty information to earn rewards — which means pulling out a phone, opening an app, finding the link to the loyalty QR code, and then presenting the QR code to the cashier or reader. For payment, consumers are typically choosing between pulling out their wallet, selecting a credit card, and then dipping or tapping the card or pulling out their phone, opening it with Face ID, and then presenting it to the reader. Miller says PopID simplifies this process by requiring just tapping an on-screen button, and then looking briefly at a camera for both loyalty check-in and payment.

“We believe our partnership with JPMorgan is a watershed moment for biometric payments as it represents the first time a leading merchant acquirer has agreed to push biometric payments to its merchant customers,” Miller said. “JPMorgan brings the kind of credibility and assurance that both merchants and consumers need to adopt biometric payments.”

Consumers are getting more comfortable with biometric technology. The majority still prefer fingerprint scans to facial recognition, according to a 2023 survey from PYMENTS, but age is a factor. Gen Z consumers are more open to facial recognition than to fingerprint scans or entering a password.

Juniper Research forecasts over 100% market growth for global biometric payments between 2024 and 2028, and by 2025, $3 trillion in mobile, biometric-secured payments.

To be sure, security concerns and the hacking of biometric data as a consequence of sharing it, will remain important to the evolving usage and conversation.

Sheldon Jacobson, a professor in computer science at the University of Illinois, Urbana-Champaign, said he sees biometric identification as part of a technology continuum that has evolved from payment with a credit card to smartphones. “The next natural step is to simply use facial recognition,” he said.

Concerns about privacy and facial recognition, he says, are overblown. “We voluntarily give up our privacy all the time,” Jacobson said. “We post on Facebook, we use social media and we are basically giving up our privacy. I tell people constantly that everything about you is already out there.”

Technology

Anthropic reportedly preparing for one of the largest IPOs ever in race with OpenAI: FT

Published

5 hours ago

December 3, 2025

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Anthropic reportedly preparing for one of the largest IPOs ever in race with OpenAI: FT

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Anthropic, the AI startup behind the popular Claude chatbot, is in early talks to launch one of the largest initial public offerings as early as next year, the Financial Times reported Wednesday.

For the potential IPO, Anthropic has engaged law firm Wilson Sonsini Goodrich & Rosati, which has previously worked on high-profile tech IPOs such as Google, LinkedIn and Lyft, the FT said, citing two sources familiar with the matter.

The start-up, led by chief executive Dario Amodei, was also pursuing a private funding round that could value it above $300 billion, including a $15 billion combined commitment from Microsoft and Nvidia, per the report.

It added that Anthropic has also discussed a potential IPO with major investment banks, but that sources characterized the discussions as preliminary and informal.

If true, the news could position Anthropic in a race to market with rival ChatGPT-maker OpenAI, which is also reportedly laying the groundwork for a public offering. The potential listings would also test investors’ appetite for loss-making AI startups amid growing fears of a so-called AI bubble.

However, an Anthropic spokesperson told the FT: “It’s fairly standard practice for companies operating at our scale and revenue level to effectively operate as if they are publicly traded companies,” adding that no decisions have been made on timing or whether to go public.

CNBC was unable to reach Anthropic and Wilson Sonsini, which has advised Anthropic for a few years, for comment.

According to one of the FT’s sources, Anthropic has been working through internal preparations for a potential listing, though details were not provided.

The FT report follows several notable changes at the company of late, including the hiring of former Airbnb executive Krishna Rao, who played a key role in the firm’s 2020 IPO.

CNBC also reported last month that Anthropic was recently valued to the range of $350 billion after receiving investments of up to $5 billion from Microsoft and $10 billion from Nvidia.

In its race to overtake OpenAI in the AI space, the startup has also been expanding aggressively, recently announcing a $50 billion AI infrastructure build-out with data centers in Texas and New York, and tripling its international workforce.

According to the FT report, investors in the company are enthusiastic about Anthropic’s potential IPO, which could see it “seize the initiative” from OpenAI.

While OpenAI has been rumoured to be considering an IPO, its chief financial officer recently said the company is not pursuing a near-term listing, even as it closed a $6.6 billion share sale at a $500 billion valuation in October.

Technology

We’re raising our CrowdStrike price target following a beat and raise quarter

Published

7 hours ago

December 3, 2025

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We're raising our CrowdStrike price target following a beat and raise quarter

Technology

Okta shares fall as company declines to give guidance for next fiscal year

Published

9 hours ago

December 2, 2025

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Okta shares fall as company declines to give guidance for next fiscal year

Cheng Xin | Getty Images

Okta on Tuesday topped Wall Street’s third-quarter estimates and issued an upbeat outlook, but shares fell as the company did not provide guidance for fiscal 2027.

Shares of the identity management provider fell more than 3% in after-hours trading on Tuesday.

Here’s how the company did versus LSEG estimates:

Earnings per share: 82 cents adjusted vs. 76 cents expected
Revenue: $742 million vs. $730 million expected

Compared to previous third-quarter reports, Okta refrained from offering preliminary guidance for the upcoming fiscal year. Finance chief Brett Tighe cited seasonality in the fourth quarter, and said providing guidance would require “some conservatism.”

Okta released a capability that allows businesses to build AI agents and automate tasks during the third quarter.

CEO Todd McKinnon told CNBC that upside from AI agents haven’t been fully baked into results and could exceed Okta’s core total addressable market over the next five years.

“It’s not in the results yet, but we’re investing, and we’re capitalizing on the opportunity like it will be a big part of the future,” he said in a Tuesday interview.

Revenues increased almost 12% from $665 million in the year-ago period. Net income increased 169% to $43 million, or 24 cents per share, from $16 million, or breakeven, a year ago. Subscription revenues grew 11% to $724 million, ahead of a $715 million estimate.

For the current quarter, the cybersecurity company expects revenues between $748 million and $750 million and adjusted earnings of 84 cents to 85 cents per share. Analysts forecast $738 million in revenues and EPS of 84 cents for the fourth quarter.

Returning performance obligations, or the company’s subscription backlog, rose 17% from a year ago to $4.29 billion and surpassed a $4.17 billion estimate from StreetAccount.

This year has been a blockbuster period for cybersecurity companies, with major acquisition deals from the likes of Palo Alto Networks and Google and a raft of new initial public offerings from the sector.

Okta shares have gained about 4% this year.

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