China has seen the rise of QR code scanning as a means to make financial transactions such as payments, but Tencent believes facial recognition and new innovations could replace the existing high-tech systems.
According to CNBC, vice president of Tencent's WeChat Business Group, Greg Geng, said on Tuesday that while QR codes almost completely replaced the card and cash payments, newer innovations in the financial sector such as financial recognition could replace code scanning as well.
"It's possible that in the next few years, new and better products could emerge to replace QR codes," Geng noted. As part of the tech company's efforts in exploring new innovative payment schemes, Tencent is testing the possibility of using facial recognition.
Geng also clarified that should the company's facial recognition payment system passes all testing procedures, the social network and tech firm will comply with the country's data protection policies to ensure security and privacy of user information.
Already, most people in China use QR codes to make payments. The barcode system allows for mobile payments to be completed without the need for a credit card or cash. Industry experts believe Chinese consumers will welcome new payment schemes.
One of these newer systems could be WeChat Pay's "Frog Pro." The scheme allows consumers to make payments after scanning their faces on a device that will determine their identity.
Tencent is currently testing the system in a number of retail chains across the country. Rolled out for testing in August, the facial recognition system is expected to challenge AliPay's very own "Dragonfly."
In October, China's UnionPay also introduced its facial recognition service during the World Internet Conference. While debates are going on regarding the data privacy and protection measures that should be taken in relation to the service.
UnionPay said "Face Scan Pay," as translated by TechNode, will allow consumers to scan their faces on an authentication device and afterward, they will be asked to provide a payment password to complete a transaction.
It remains to be seen whether regulators will officially approve the new payment scheme. However, some industry experts believe the country's consumers will be quick to adopt the system due to the convenience it offers.
Outside China, other companies are also moving towards better innovations that will improve the experience of consumers. Spain-based CaixaBank this week announced the launch of a facial recognition payments trial at a Nestle Market.
The facial recognition scheme by CaixaBank was developed in partnership with multiple financial institutions such as Visa, Global Payments, and more. The said institutions have expressed support for the Payment Innovation Hub.
