Poland is currently one of the leaders in Europe in terms of accepting cashless payments. Research also indicates that Poles are increasingly using solutions for mobile payments without the need for physical cards such as Google Pay, Apple Pay, or BLIK. Due to the high demand for these services there is a need for more innovative and secure solutions. This is where PayEye, a fintech startup developing in Poland, enters the scene. However, the company has ambitions not only to revolutionize the Polish market but to be a globally-used solution. Therefore, the company is currently expanding its operations simultaneously in Poland and the United States. But does this solution have a chance to succeed in foreign markets?
The PayEye technology offers the capability to link chosen payment cards to a personal biometric pattern allowing for one-glance payment authorization without the need to remember passwords or PINs. Eye biometrics are considered one of the safest solutions because each person’s eye pattern is unique, making it virtually impossible to counterfeit and providing a high level of security. This solution is also highly convenient as it doesn’t require consumers to carry any physical cards or devices; a simple glance at the device is all that’s needed to approve a transaction, which can expedite the payment process.
However, the company must contend with numerous challenges and barriers, both in Polish and foreign markets. Regulations and data protection laws related to biometrics may hinder the development of such technology. Yet, this is not the only issue the company may encounter when entering foreign markets. In many countries, mobile payments remain a challenge with many service points lacking even basic card payment terminals. Biometric solutions, like eye payments depend on appropriate iris scanning hardware, which may limit access to services in certain places. Another potential threat could also be fraud involving unauthorized payments, especially when a glance is enough to make a payment. This provides a significant opportunity for fraudsters who could install such devices in public places to collect biometric data and make payments based on that data. To prevent such practices, the company has added a security measure requiring the iris of the eye to be within a 35-centimeter distance to make a payment. But this is still not sufficient security and still carries a significant risk. The danger may also involve the use of very accurate eye photos or iris scans for making payments, which the device might mistakenly consider as a real eye iris. Some customers may also have concerns that using biometrics for payments could lead to privacy breaches and abuses. PayEye must work on building trust and ensuring the safety of biometric data.
Nevertheless, the number of PayEye points in Poland already exceeds 150 and continues to grow indicating rapid and direct company development. The company also offers an interesting business model for renting devices enabling payments at a very favorable cost for entrepreneurs – in Poland it costs just 20 PLN per month. In the United States, the company does not provide device rentals, and the purchase price for such a terminal is approximately $500. In the American market the company has hired an experienced manager from the fintech industry with knowledge of the American market, who believes this solution has great potential and it perfectly fits the needs of American consumers. However, whether the company can overcome the challenges facing this solution will become apparent in the coming months.
By Mateusz Tomkiewicz
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What’s the reason for this is that Poles are increasingly using mobile payments (compared to the EU and the US)?
Seems like it had some great potential