NRF CIO Hogan Likes Pay By Touch

Cleveland allows customers to Pay By Touch of a finger
Friday, October 20, 2006
Mary Vanac - Plain Dealer Reporter




The latest technology at Zagara's Marketplace definitely has "the cool factor," in the words of store manager Dan Gradijan.

This week, the Cleveland Heights grocer became the first retailer in Northeast Ohio to offer the Pay By Touch Wallet -- a point-of-sale system that enables customers to pay for groceries by scanning their index fingers and keying in a number. There's no need for checks, credit or debit cards, or cash, all of which can be stolen. "Nobody can steal your fingerprint," Gradijan said. The biometrics system that verifies your identity and enables you to write an electronic check on your account also is less costly to use -- for both consumers and retailers.

Store director John Zagara approached Pay By Touch about a year ago, Espinosa said. Zagara had read about the finger-scan technology. "He's an innovative guy," Espinosa said of Zagara, whose grandfather, Charles, opened the first Zagara's on Kinsman Road in 1936. Zagara was unavailable for comment on Thursday.

"I give them a lot of credit" for installing the Pay By Touch technology, said David Hogan, chief information officer for the National Retail Federation in Washington.

Convenience and speed are the likely reasons why customers at grocery stores, and perhaps convenience stores and gas stations, might adopt biometric checkout technology, Hogan said. "If you're a parent and you've got a toddler on your hip, you can scan your finger and punch in a number, and you're on your way," he said.

Pay By Touch, which bought its nearest competitor, BioPay, earlier this year, is the clear leader in biometric point-of-sale technology, the retail federation's Hogan said. In some form, biometrics probably is coming to a store near you. "A lot of retailers are finding payment solutions with biometrics very appealing," Hogan said.

About David Hogan

David Hogan was named Senior Vice President and Chief Information Officer for the National Retail Federation (NRF), the world's largest retail trade association, in 2002. He directs numerous internal and retail industry IT initiatives and manages NRF's CIO Council, a committee of retailing's most prominent chief information officers. Dave also provides oversight for the Association for Retail Technology Standards (ARTS), dedicated to creating an international, barrier-free technology environment for retailers.

Hogan is a former member of the NRF's CIO Council and has spent his entire career in retail. Prior to joining NRF, he served as Vice President and CIO of international retailer, Duty Free Americas. He has held senior level positions with The Limited Inc. serving as Business Unit CIO for their Lane Bryant division and Vice President of MIS for specialty footwear retailer, The Kobacker Company.

Back to the Story...

Security of private financial information also is an adoption factor, Espinosa said. Pay By Touch patrons don't use checks, or debit or credit cards, so their account numbers aren't visible to clerks or other shoppers. Patrons also don't use a personal identification number that is tied to their checking accounts.

Sophisticated technology underneath each checkout counter encrypts customers' digitized fingerprints and search numbers, Espinosa said. This information is sent to a high-security data center managed by IBM. Pay By Touch generally subtracts your grocery bill from your checking account overnight.

The Pay By Touch technology might help speed customers through Zagara's already speedy checkout lines. "Our wait time and checkout time is 1½ minutes," on average, store manager Gradijan said.

Zagara's customers can start their finger scans after the clerk scans their first grocery item. By the time all of the grocery items are scanned, the customer can approve the payment amount by hitting the "yes" button on the touch pad at the cashier's station.

The electronic check transaction that results is free to the customer, Espinosa said. The e-check transaction costs less than half of what a credit card transaction would for the retailer, Gradijan said.

The California company's system is installed in about a dozen stores in Ohio, including a few Sunflower Markets in Columbus and a Biggs Hypermarket in Cincinnati, Espinosa said.

Pay By Touch also makes other financial systems, including one that uses biometrics to authenticate people who cash their payroll checks at grocery stores, Espinosa said.

To reach this Plain Dealer reporter:
mvanac@plaind.com, 216-999-5302

Pay By Touch, Paypal & Google Pose Genuine Threat to Card Companies

CHICAGO, Oct 19, 2006

The days of merchant-subsidized credit card rewards programs, rapid increases in interchange fees, and confusing fee structures for credit card purchases are numbered, according to new research by Diamond Management & Technology Consultants, Inc.

Consumers are already seeing popular "cash back" and other reward programs being curtailed. Banks are fearful of losing a large fraction of their $19 billion in interchange fees that fund these programs. And if merchants successfully steer customers to competitive payment types, banks stand to lose a significant slice of the transaction volume that drives their card interest income, usually estimated as 70 percent of total credit card revenue.

"Merchants are unhappy with what they consider unreasonable credit card fees and are beginning to take serious steps to minimize their expenses," said Carl Hugener, a partner in Diamond's financial services practice.

"Left untreated, the landscape of the $150 billion card industry could be altered drastically in the next three to five years and end up costing issuing banks and card associations billions."

As for payment alternatives, Automated Clearing House (ACH) payments appear capable of siphoning payment volumes away from credit cards and instilling bargaining power with merchants at the expense of card issuers and associations.

Emerging competitors like Pay By Touch, PayPal, and Google Payments pose a genuine threat to dominant card operations.

At one level a credit card is simply an authentication device that proves who its user is and gives access to the consumer's account. The process through which the user is authenticated begins the routing of the transaction over the card network. But separating authentication from the card would allow merchants to drive consumer payments to low-cost avenues.

"History tells us that once models are taken apart this way, more and more alternatives arise, and the systems eventually fall apart," Hugener said.

The credit card business has been a bonanza for banks over the past several decades. It will continue to be a great business if the industry recognizes the coming change and adapts before emerging competitors do," Hugener said.

Former Verus CEO Joins Pay By Touch

Payment Industry Veteran Ron Carter Named President of Pay By Touch Payment Solutions

Executive Brings Operational Expertise in Banking and Financial Services to Biometrics Pioneer

Pay By Touch, a leader of biometric authentication, personalized rewards and payment solutions, today announced that Ron Carter, credit card industry veteran and former President and Chief Operating Officer of Verus Financial Management has joined the company as President of Pay By Touch Payment Solutions, LLC.

Carter brings more than 35 years of experience in general management and operations for the banking and financial services industries to Pay By Touch. As President of Pay By Touch Payment Solutions, he will report directly to Pay By Touch's President and Chief Operating Officer, John Morris.

In his new role, Carter will be responsible for the day to day operations of the company's payment services divisions, which serve more than 138,000 retail clients and processes more than $18 Billion annually.

"Ron Carter is a proven leader and hands-on operator who brings deep financial services and payment processing expertise to Pay By Touch," said John Morris, President and COO, Pay By Touch. "We look forward to working with Ron to make electronic transactions both more secure for consumers and more cost effective for merchants, one touch at a time."

"I am thrilled to be joining such an innovative and dynamic company with a growing reputation for service in the merchant community," said Ron Carter, President of Pay By Touch Payment Solutions. "I look forward to working with John Rogers, John Morris and Pay By Touch's world-class management team to provide merchants everywhere with more secure and convenient transaction solutions."

At Verus Financial Management, a company that provides credit card and check payment processing services to small and mid-sized merchants, Carter managed the acquisition and successful integration of six companies and oversaw day-to-day operations as President and COO.

Previously, Carter served as Executive Vice President of Vital Processing Services, where he was responsible for all lines of business, customer relations, sales, operations and information technology. He had served as president of BUYPASS Corporation, a division of Electronic Payment Services, which was acquired by Concord in 1999.

About Pay By Touch

Pay By Touch is wowing the world one touch at a time as the leader in biometric authentication, personalized marketing and payment solutions. To date, the company's patented biometric services enable 3.3 million shoppers to quickly and securely access personal accounts using a finger scan to identify themselves, make purchases, earn rewards and cash checks at 2,400 locations nationwide. It also provides robust payment processing solutions for ACH (electronic checking), card-present and card-not- present debit and credit transactions for 138,000 retail clients and manages personalized rewards programs for 130 million opt-in consumer profiles. Founded in 2002 and headquartered in San Francisco, Pay By Touch employs 700 professionals and holds 50 patents worldwide on secure, convenient and cost- effective transaction solutions.

Advantage: Pay By Touch

The TrueMe technology brings authentication services to individuals instead of limiting the process to a specific machine, said Goelz.

"This will have a huge advantage to e-commerce on the Internet," he added.

The same finger sensor used for online authentication can also be used to protect the data on the computer, the company said.

In addition, multiple users can share the same computer by registering their individual fingers on the TrueMe sensor without compromising security. With other security devices, sharing is nearly impossible, and local data protection is not addressed, UPEK maintained.

The innovative technology eliminates the risk factor for online merchants, Goelz pointed out. "It answers the question all online merchants ask, that is, 'How do I know the true identity of my customer?' For online merchants, it reduces risk and thus lowers the cost of doing business on the Internet."

The new on-demand service, which targets both individuals and businesses, will free Internet users from setting up separate passwords for different purposes.

"With TrueMe, a simple touch of the finger gives chief security officers the security they demand while giving users the simplicity they desire," said Jon Siegal, executive vice president of Pay By Touch. The new technology will put individual and corporate authentication on a higher security level, said UPEK.

"The same level of hardware-based security and convenience UPEK provides to millions of users for their personal and business computers can now be extended over the Internet by creating a trusted path between businesses and their customers," noted President and CEO Alan Kramer.

HyVee Joins Pay By Touch Bandwagon

One of the Nation's Largest, Most Innovative Supermarket Chains Rolls Out Biometric Payment Program Service to Improve Customers' Shopping Experience

"Hy-Vee prides itself on innovation and customer service. We are personally committed to providing great value and the best possible shopping experience," said Eric Smith, vice president, management information systems, Hy-Vee, Inc.

"Pay By Touch gives us the opportunity to help shoppers move quickly through the checkout line with the touch of their finger -- no need to remember PIN numbers, write checks or fumble for credit cards. We are very excited that the new program is underway and are looking forward to customer feedback."

"Pay By Touch is thrilled to join forces with Hy-Vee to give shoppers a more secure, private and convenient way to pay at the checkout line," said Pete Espinosa, vice president, Pay By Touch. "Hy-Vee has achieved regional and national recognition for its laser focus on superior customer service, making our efficient and easy-to-use payment solutions a perfect match."

About Hy-Vee, Inc.

Hy-Vee, Inc., headquartered in West Des Moines, is an employee-owned corporation operating 225 retail stores in seven Midwestern states. For 2005, the company recorded total sales of $4.9 billion, ranking it among the top 20 supermarket chains and the top 35 private companies in the U.S.

More On TrueMe and UPEK

"Biometrics, properly applied, would seem to be the answer to this troubling user security problem. As a result the TrueMe service enters a market in dire need of the capability it provides." -Rob Enderle, Principal Analyst for the Enderle Group.

TrueMe offers UPEK secure on-demand biometric authentication service over the Internet UPEK, Inc. has announced that its biometric solutions have now been extended to the Internet. This hardware and software offering is being utilized by the new TrueMe(tm) service, a secure on-demand biometric authentication service available over the Internet.

A San Francisco, Calif.-based integrated biometric authentication solutions provider, Pay By Touch Inc., has introduced TrueMe, a biometric authentication service delivered over the Internet.

The solution aims to solve the issue of password protection and management, not to mention credit card fraud and identity theft, in a world where RSA Security said password security and management is considered problematic at 88 percent of organizations it surveyed in recent months

Information about the user's finger is encrypted inside the finger sensor and combined with the unique device ID before it is sent to the TrueMe authentication servers. The user's information is never exposed to the computer operating system or the public Internet.

The TrueMe authentication servers then decrypt and process the information, authenticate the user, and ensure he or she is authorized to use the specified device. The user's authenticated identity is sent through a secure connection to the website or service that the customer is trying to access. If the person is identified as an authorized user, he or she is immediately granted access.

TrueMe could also enable businesses to provide customers, partners, and employees with secure, authenticated access to their computers, desktop applications and password-protected Web sites and services such as banking and Internet service providers (ISPs). The solution's protection also extends to enterprise applications like Salesforce.com's no-demand business services, officials said.

With the TrueMe service, the data on the computer can be protected with the same finger sensor used for online authentication. In addition, multiple users can share the same computer by registering their individual fingers on the TrueMe sensor without compromising security, the company said.

"TrueMe brings the security and protection of our industry-leading biometric services to the Internet for the first time, providing a new layer of privacy and convenience to PC users everywhere," said Jon Siegal, executive vice president, Pay By Touch. "A recent Visa survey says consumers are more concerned about the loss of personal and financial data than they are over terrorism.

"Clearly this is an issue of concern to consumers and businesses alike. Our solution provides greater security and benefits to both the user and businesses than other solutions out there, and it does so without expecting the user to jump hoops all to get perhaps minimally better security than what is presently offered."


To that end, Salesforce.com, PC maker Lenovo, (who bought IBM) and biometric security solutions provider UPEK are among the first providers supported by TrueMe. TrueMe has certified the integrated finger sensors on the Lenovo ThinkPad T60 and X60.

Pay By Touch also announced that it has teamed with UPEK to offer a TrueMe-branded and certified USB finger sensor for users that do not have sensors built-in to their PCs.

The company is also certifying millions of UPEK sensors that are already embedded in laptops and USB devices. TrueMe uses secure hardware to provide finger-to-server security, greatly reducing identity theft threats, such as phishing and Trojan horse attacks.

Our vision has always been for our authentication technology to evolve from securing the device to securing the network to securing the service," said Alan Kramer, CEO, UPEK.

"Our success protecting computers and networks has laid the foundation for protecting the Internet experience, and we are delighted to deepen our collaboration with Pay By Touch as they expand from innovating how transactions occur in stores to innovating how transactions occur online."

"We are working with UPEK to drive a fundamental paradigm shift in the way people prove and secure their identities online," stated Jon Siegal, Executive Vice President, Pay By Touch.

"The hardware-based security architecture under UPEK's sensors is ideal for our TrueMe service, and we are pleased to be working together to launch the industry's first on-demand biometric authentication service."

"We've known for decades that usernames and passwords are neither secure nor convenient enough to protect a user's identity or a company's assets", said Rob Enderle, Principal Analyst for the Enderle Group.

"Biometrics, properly applied, would seem to be the answer to this troubling user security problem. As a result the TrueMe service enters a market in dire need of the capability it provides."

TrueMe Is A Precursor to Online PIN Debit

TrueMe ID Is a Precursor to Online Payments, Pay By Touch Says

Pay By Touch Inc., which on Monday introduced a new, personal-computer-based authentication service based on fingerprint identification, plans to couple the new service with online payments and loyalty programs some time in the first half of 2007.

The new product, called TrueMe, relies on the San Francisco company’s technology, along with fingerprint sensors from UPEK Inc., Emeryville, Calif., to authenticate consumers when they log into Web sites.

Pay By Touch says it expects TrueMe to help combat phishing, keylogging, and other frauds plaguing the Internet. “Home users are the most targeted attack sector [for fraudsters],” says Jon Siegal, executive vice president at Pay By Touch. “It’s a big problem.”

The first Web site to adopt the product is Salesforce.com, a provider of customer-management systems that has half a million users. Siegal says more sites are in the pipeline, including an application involving remote deposit capture, the process by which paper checks are truncated into electronic image files for processing.

At the same time, Pay By Touch has certified fingerprint sensors already built in to the X60 and the T60 laptops made by Lenovo Group Ltd. For users with machines that lack integrated sensors, Pay By Touch has arranged with UPEK to produce USB-enabled external devices.

TrueMe is the first of a series of online applications Pay By Touch, which specializes in authenticating point-of-sale payments for supermarkets and other stores, plans to introduce over the next 12 months, Siegal says.

He says an online version of Pay By Touch’s payments product will arrive during the first half of next year and will rely on TrueMe to authenticate users. In February, Pay By Touch announced a product for Web-based payments, called Pay By Touch Online, that included sign-in and multifactor authentication applications (Digital Transactions News, Feb 6). Siegal says TrueMe is essentially these two components of Pay By Touch Online.

“This is the first service made available under Pay By Touch Online,” he says. “This is the first chapter of the story.”

Siegal says the company originally intended to introduce the sign-in and authentication components in the spring, but found the technologies behind the product needed more work.

This included the technology behind the fingerprint sensors. “We weren’t able to deliver in the spring time,” he says, adding Pay By Touch wanted to make sure “the technologies and user experience were where they needed to be.” He says, though, that the company’s plan all along was to introduce serially the Pay By Touch Online components as stand-alone products.

“It’s safe to say we expect within 12 months to have millions of users of our Internet-based services,” including the yet-to-be-introduced payments and loyalty components, Siegal says.

Wow, that's a very powerful statement, but remember, Pay By Touch gets a big boost when Microsoft's Windows Vista, is released in early 2007.

Pay By Touch is an integral part of a "who's who in payments" consortium with Microsoft Vista financial services platform called "PASS" (Payments as a Secure Service) which will boost PBT enrollment on both the business and personal end. The PASS services are expected to be fully implemented by the time Vista launches early in 2007.

In addition to combating phishing and other online frauds, TrueMe will help banks meet stringent guidelines issued last year by the Federal Financial Institutions Examination Council, Pay By Touch says.

By the end of 2006, financial institutions must have in place a workable plan to authenticate online-banking customers by means more robust than standard user-name/password combinations, according to the guideline.

“We absolutely believe TrueMe satisfies the FFIEC guidance,” Siegal says. “It presents a significant business opportunity for us.”

Pay By Touch, which recently reached the 3-million mark in consumers enrolled for its POS service, has installed its system in 2,400 stores. In addition, it processes card transactions for some 125,000 merchant locations and Web sites as a result of its acquisition last year of CardSystems Inc., a merchant-acquiring processor.

The plan is for the company to continue to sign on new merchants while forging a market presence in Canada and the U.K. in the coming weeks.

And one of its units, ATM Direct Inc., is marketing an online-payments service, unrelated to Pay By Touch Online (until later...) that lets consumers use their PIN debit cards to pay e-commerce sites.

That's when this unit will ring like a cash register for Pay By Touch and it's shareholders.

Coming Soon...Secure Web Transactions

Online biometric authentication service unveiled

by Liam Lehey - Canadian Bureau


A San Francisco, Calif.-based integrated biometric authentication solutions provider, Pay By Touch Inc., has introduced TrueMe, a biometric authentication service delivered over the Internet.

The solution aims to solve the issue of password protection and management, not to mention credit card fraud and identity theft, in a world where RSA Security said password security and management is considered problematic at 88 percent of organizations it surveyed in recent months.

The Pay By Touch online authentication service is powered by technology from biometric fingerprint security solutions provider UPEK, vis-à-vis the latter's secure fingerprint reader, embedded in notebooks or deployed as part of a Pay By Touch solution at participating retail outlets in the U.S.

Moreover, the two companies teamed up to produce a TrueMe-branded and certified USB finger sensor for users that do not have sensors built-in to their PCs.

"We're continuing to see an explosion of interest and adoption of our technology whether on notebooks or other PC peripherals," said Greg Goelz, vice president of marketing for UPEK. "Now we're seeing that proliferate into trusted services as a means of providing a securely linked, end-point system in a hosted application environment.

"This effectively eliminates the need for consumers to use a credit card, they can use their fingerprints at the point of sale."

TrueMe is designed to provide PC users with an easy and secure means to identify oneself, interact and transact on the Web, via the use of fingerprints. By sliding a finger on a TrueMe-certified finger sensor, users can securely access a Web-based bank account or credit card account, thereby eliminating the need to remember IDs, passwords and account numbers.

"TrueMe brings the security and protection of our industry-leading biometric services to the Internet for the first time, providing a new layer of privacy and convenience to PC users everywhere," said Jon Siegal, executive vice president, Pay By Touch. "A recent Visa survey says consumers are more concerned about the loss of personal and financial data than they are over terrorism.

"Clearly this is an issue of concern to consumers and businesses alike. Our solution provides greater security and benefits to both the user and businesses than other solutions out there, and it does so without expecting the user to jump hoops all to get perhaps minimally better security than what is presently offered."

Pay By Touch said more than three million Americans have enrolled in it's biometric payment network through 2,400 retail locations across 44 states to date, Seigal said. These customers can use their finger to make private, secure purchases wherever they see the Pay By Touch logo and the plan is for the company to continue to sign on new merchants while forging a market presence in Canada and the U.K. in the coming weeks.

TrueMe could also enable businesses to provide customers, partners, and employees with secure, authenticated access to their computers, desktop applications and password-protected Web sites and services such as banking and Internet service providers (ISPs). The solution's protection also extends to enterprise applications like Salesforce.com's no-demand business services, officials said.

To that end, Salesforce.com, PC maker Lenovo, and biometric security solutions provider UPEK are among the first providers supported by TrueMe. TrueMe has certified the integrated finger sensors on the Lenovo ThinkPad T60 and X60.

Pay By Touch also announced that it has teamed with UPEK to offer a TrueMe-branded and certified USB finger sensor for users that do not have sensors built-in to their PCs. The company is also certifying millions of UPEK sensors that are already embedded in laptops and USB devices. TrueMe uses secure hardware to provide finger-to-server security, greatly reducing identity theft threats, such as phishing and Trojan horse attacks.

When signing on to a TrueMe enabled system, a user touches a finger sensor built into a computer or attached as a USB device. Information about the user's finger is encrypted inside the finger sensor and combined with the unique device ID before it is sent to the TrueMe authentication servers. The user's information is never exposed to the computer operating system or the public Internet.

"What we provide is a very personal and secure service, it is not a public experience," UPEK's Goelz said. "It's a faster transaction, consumers are finding it very convenient, and for people concerned about identity theft, this technique thwarts that threat."

The TrueMe authentication servers then decrypt and process the information, authenticate the user, and ensure he or she is authorized to use the specified device. The user's authenticated identity is sent through a secure connection to the website or service that the customer is trying to access. If the person is identified as an authorized user, he or she is immediately granted access.

With the TrueMe service, the data on the computer can be protected with the same finger sensor used for online authentication. In addition, multiple users can share the same computer by registering their individual fingers on the TrueMe sensor without compromising security, the company said.

TrueMe would be available in late October, with pricing based on a per-user, per year basis.

Pay By Touch Unveils TrueMe (tm)

Pay By Touch(TM), the leader in integrated biometric authentication, personalized marketing and payment solutions, today announced the debut of TrueMe(TM), the first secure, on- demand biometric authentication service on the Internet.

TrueMe (trueme.com) gives PC users a fast, easy and secure way to identify themselves, interact and transact on the Web using their fingerprints. By simply sliding a finger on a TrueMe-certified finger sensor, users can securely access their Web-based accounts with no need to remember IDs, passwords or account numbers. TrueMe is quick and easy to use and, most importantly, safe.

"With the continued growth of identity theft, credit card fraud and phishing scams, security on the Internet is more important than ever," said John Rogers, founder, Chairman and Chief Executive Officer of Pay By Touch. "TrueMe brings the security and protection of our industry-leading biometric services to the Internet for the first time, providing a new layer of privacy and convenience to PC users everywhere."

The debut of TrueMe is a significant milestone in Pay By Touch's continued growth and expansion into new markets. Already, more than three million Americans have enrolled in Pay By Touch's biometric payment network through 2,400 retail locations across 44 states.

TrueMe enables businesses to provide customers, partners and employees with secure, authenticated access to their computers, desktop applications and password-protected Web sites and services such as online banking, e-commerce and Internet service providers (ISPs). TrueMe's protection also extends to enterprise applications such as salesforce.com's on-demand business services.

Salesforce.com, PC industry giant Lenovo(TM) and biometric security solutions provider UPEK(R) will be among the first providers supported by TrueMe, which is being demonstrated today at salesforce.com's Dreamforce conference.* Pay By Touch selected ThinkPad notebooks for the layered security components they offer, including Lenovo's ThinkVantage Technologies and Client Security Solution.

"When we announced AppExchange, we knew that many innovative applications would follow -- from both inside and outside salesforce.com," said Marc Benioff, Chairman and CEO, salesforce.com. "We are thrilled to see TrueMe integrated with salesforce.com's on-demand business services. It brings an unprecedented level of security and convenience to our customers with minimal effort on their part."

"With TrueMe, a simple touch of the finger gives Chief Security Officers the security they demand while giving users the simplicity they desire," said Jon Siegal, Executive Vice President, Pay By Touch. "TrueMe satisfies both needs without the hassle of multiple User IDs and passwords."

Pay By Touch certified the integrated finger sensors on select Lenovo ThinkPad(R) T60 and X60 notebooks for meeting security, reliability and support criteria. "We have already shipped more than three million notebooks with fingerprint readers and our customers are excited about the added security now available on their ThinkPads using TrueMe," said Marc Godin, vice president of Marketing, Notebook Business Unit, Lenovo. "With the holiday gift-giving season approaching, Lenovo customers using biometrics will benefit from a level of security previously not available in the industry, and can feel confident that their financial information is protected while they shop online."

Teaming with UPEK to Deliver a Compatible TrueMe Finger Sensor

Pay By Touch also announced today that it has teamed with UPEK to offer a TrueMe-branded and certified USB finger sensor for users that do not have sensors built in to their PCs. The Company is also certifying millions of UPEK sensors that are already embedded in laptops and USB devices to provide finger-to-server security.

"TrueMe is integrating our unique finger security solutions into a ground- breaking authentication service" said Alan Kramer, UPEK President and CEO. "The same level of hardware-based security and convenience UPEK provides to millions of users for their personal and business computers can now be extended over the Internet by creating a trusted path between businesses and their customers."

How TrueMe Works

1. When signing on to a TrueMe enabled system, a user simply touches a TrueMe certified finger sensor built into a computer or attached as a USB device. Information about the user's finger is encrypted inside the finger sensor and combined with the unique device ID before it is sent to the TrueMe authentication servers. The user's information is never exposed to the computer operating system or to the public Internet.

2. The TrueMe authentication servers then decrypt and process the information, authenticate the user, and ensure that he or she is authorized to use the specified device. The user's authenticated identity is sent through a secure connection to the website or service that the customer is trying to access. If the person is identified as an authorized user, he or she is immediately granted access.

3. With the TrueMe service, the data on the computer can be protected with the same finger sensor used for online authentication. In addition, multiple users can share the same computer by registering their individual fingers on the TrueMe sensor without compromising security. With other security devices, sharing is nearly impossible and local data protection is not addressed.

The TrueMe service is available on a per-user, per year basis. To learn more, please visit http://www.trueme.com/ .

Editor's Note: Jon Siegal, Executive Vice President, Pay By Touch, will demonstrate the new TrueMe service at the salesforce.com User and Developer Conference Monday, October 9th, 12:30 p.m. Expo Hall, Presentation Theater A. He will demonstrate TrueMe during the rest of the conference in the AppExchange Partner Pavilion.

Biometrics to Change Relationships

Biometrics to Change Relationships
By George Anderson

John Costello has an impressive resume as a marketing executive with Home Depot, Sears and Yahoo. His new job, president of the biometric payment company Pay By Touch, doesn't seem as prestigious at first glance, but don't tell that to Mr. Costello.

As far as he is concerned, he is in exactly the right place, he told Ad Age, because he believes biometric systems have the potential to transform the relationship among consumers, retailers and manufacturers."

As he sees it, marketing is in the process of evolving from mass communications to one-to-one relationships. In the future, as he sees it, consumers could pay for groceries with a touch of a finger at an in-store kiosk and, at the same time, receive offers based on their personal preferences and previous shopping behavior.

There still appears to be a long way to go before Mr. Costello's future vision has the opportunity to be realized. Pay By Touch is still in the early stages of development, testing its system in 2,400 stores.

Discussion Question: What do you see as the potential of biometric technology in retail operations?

The Return of John Costello - AdAge.com (free reg. required)

Comments... Send in Yours!

Oh, yes. Nothing says "close relationships" like fingerprinting someone or doing a retina scan. Len Lewis, President, Lewis Communications, Inc.

When Pay by Touch and their (former) top competitor, BioPay (which was bought by PBT) first came onto the scene, their proposition to the customer was speed and convenience, while helping the retailer to transfer a significant amount of transactions from the more expensive "credit card" transactions to some lesser expensive form of cash transaction.

To the extent that Pay by Touch wins over shoppers with their biometric option, their marketing programs to achieve "critical mass" participation from shoppers will dictate the financial success of the core product, on the premise of less expensive transactions fueling the ROI.

But in my view, what John Costello understood when he came on board as CEO of PBT was that the core business proposition had to change from a "payment system" alternative, to a "customer recognition system." The latter, broader vision of the role of biometrics enables PBT to begin to partner with other one-to-one, CRM solutions. This synergy, plus the acquisition of Bio Pay, has propelled PBT into a position of market leadership. Now the outstanding question is whether or not the propositions to both retailer, brand, and end customer are compelling enough to drive acceptance and usage.

My bet is yes; with time and the right engagement programs, biometrics and PBT has a real chance of becoming a real alternative to credit card transactions and frequent shopper card swiping.

Mark Heckman, VP, Retail Insights, Sorensen Associates, Inc.

Chicagoan is 3 Millionth PBT Enrollee

Pay By Touch Provides Three Million Americans With Today's Most Convenient and Secure Payment Option
Last Update: 10:01 AM ET Sep 27, 2006 SAN FRANCISCO, Sept 27, 2006 /PRNewswire via COMTEX/ --

Mary Rodriguez was celebrated as Pay By Touch's three millionth member, after signing up at a Jewel-Osco grocery store located in Chicago, Ill., at Wrigley Field on Sept. 26, 2006. (PRNewsFoto/Pay By Touch)

Pay By Touch(TM), the leader in integrated biometric authentication, personalized marketing and payment solutions has achieved a major milestone with the enrollment of three million members.

The Pay By Touch biometric payment system is quickly gaining traction with consumers who find it more secure, faster and easier to use than traditional payment systems.

Major retailers nationwide, including Jewel-Osco in Chicago, have implemented Pay By Touch in their stores to improve customer service, speed up the checkout line and reduce risks associated with fraud.

Chicagoan Mary Rodriguez is being celebrated as Pay By Touch's three millionth member, after signing up at a Jewel-Osco grocery store located on Narragansett Ave. in Chicago.

To commemorate the milestone, Pay By Touch will deposit $1,000 in Rodriguez' new Pay By Touch digital wallet, which can be accessed with the touch of a finger at more than 200 stores in the Chicagoland area, including all Jewel-Osco and Cub Foods locations, as well as a new Sunflower Market in Lincoln Park.

To broaden the celebration, Pay By Touch has declared Wednesday, Sept. 27, 2006, 'Mary R. Day' at the Narragansett Avenue Jewel-Osco store. Pay By Touch will deposit $5.00 into the digital wallets of all new enrollees who sign up for its biometric payment service in the Narragansett Avenue store that day.

"I was excited to try the Pay By Touch system because I was really curious about how it works, and my kids think the whole idea is 'cool,' said Rodriguez, a mother of three and teacher in the Chicago Public Schools. "When I learned that it was actually safer than using my debit card, and saw how much easier it was than digging through my purse, I knew it was for me."

"We are extremely pleased to welcome Mary as a Pay By Touch member. With the touch of a finger, she joined the three million consumers that are already enjoying the convenience and security of biometric payment," said John Rogers, Pay By Touch's founder, chairman and CEO. "Chicagoans are busy, hardworking people who understand that Pay By Touch makes life easier."

The Pay By Touch system uses a simple finger scan to authorize an electronic withdrawal from a customer's existing checking account. Each fingerprint is unique, which helps prevent fraud or identity theft, and since there is nothing to carry, there is nothing to be lost or stolen.

A one time enrollment in the secure program takes only a few minutes to complete online or in person at participating stores. Members can link both their checking accounts and their merchant loyalty membership cards to the Pay By Touch system. Once enrolled, Pay By Touch members are able to use the Pay By Touch system at any participating store.

PBT is 2006 Innovation Award Nominee

PBT Nominated for 2006 Chicago Innovation Award

The 126 nominees for a 2006 Chicago Innovation Award will be honored Wednesday at a reception on the trading floor of the Chicago Board of Trade, one of the sponsors of the five-year-old awards program

Hall of Fame Marketer Chooses PBT

Prominent Consumer and Retail Executive Joins Biometric Industry Leader

Pay By Touch, the leader in integrated biometric authentication, personalized marketing and payment solutions, today announced that John Costello, former Executive Vice President of Merchandising and Marketing for The Home Depot, has joined the company as President, Consumer and Retail. Costello will report directly to John Rogers, Founder, Chairman and CEO, and will take a seat on Pay By Touch's Board of Directors.

Costello brings more than 25 years of general management, retail and technology leadership to Pay By Touch. In his new role, he will work closely with John Rogers and John Morris, Pay By Touch's President and COO, to lead the company's biometric authentication and payment services, while also spearheading its new personalized marketing and online services lines of business.

"Pay By Touch is bringing the power, the privacy and the security of biometrics to everyday life," said John Costello, President, Consumer and Retail, Pay By Touch. "I look forward to working with John Rogers, John Morris and our world class senior management team to address the full extent of that opportunity. Together, we will bring truly personalized marketing and unprecedented ease, speed and convenience to consumers everywhere."

Costello joins a dynamic leadership team that features a unique combination of entrepreneurs and proven veterans from the retail, franchise, financial services, heath care and loyalty marketing industries. John Rogers has more than 15 years of experience as a visionary, entrepreneur and manager. Prior to founding Pay By Touch in 2002, he was founder and CEO of eBizWorld.com. John Morris brings more than 23 years of experience in general management and retail technologies from IBM.

Pay By Touch's management team has in-depth experience working with such industry leaders as VISA, MasterCard, Bank of America, First Data Corporation, Concord EFS, IBM, Accenture, Siebel Systems and more to bring innovative ideas, products and services to life.

"As a world-class executive with deep retail expertise, John Costello brings proven leadership skills and unparalleled industry knowledge to Pay By Touch," said John Rogers, Pay By Touch's Founder, Chairman and CEO. "We are thrilled to have him on board, underscoring our ability to attract seasoned management as well as our commitment to serving merchants and consumers alike."

John Costello is a well-known and highly respected senior executive. The first half of his career was spent in classic management jobs, with the second half devoted to helping companies manage through high change environments, from start-ups like MVP.com to $80 billion companies like the Home Depot.

As part of this, Costello has been involved in some of the most visible business turnarounds and been associated with some of the most successful marketing campaigns including "Come See The Softer Side of Sears" and "You Can Do It. We Can Help." at The Home Depot.

He was most recently Executive Vice President of Merchandising and Marketing for The Home Depot, where he held responsibilities for the company's merchandising, marketing, advertising, and visual and store merchandising, public affairs, eCommerce and global sourcing, including the Company's sourcing offices in China and Mexico.

Costello joined The Home Depot in November 2002 as Executive Vice President & Chief Marketing Officer, and was promoted to assume responsibility for merchandising and global sourcing in August 2003. He led a major transformation of the merchandising, marketing, eCommerce and sourcing operations, and worked with the senior leadership team on long-term growth strategies.

Costello joined The Home Depot from Yahoo! where he served as Chief Global Marketing Officer. At Yahoo!, he worked with the CEO and senior leadership team on many of the strategies that are driving Yahoo's growth today. Prior to Yahoo!, Mr. Costello was President and CEO of MVP.com, the Internet sporting goods and outdoor retailer, which he founded with John Elway, Michael Jordan and Wayne Gretzky. He also served as President and Chief Operating Officer of Nielsen Marketing Research, USA, where he led a major restructuring of Nielsen's product line, customer service model and technology platform.

Costello served as Senior Executive Vice President of Sears from 1993 to 1998, and was a key member of the team that revitalized Sears with the "Softer Side of Sears" marketing campaign and increased focus on Sears' proprietary brands. He was an early leader of multi-channel retailing, and launched Sears.com and Sears' specialty catalog business to replace the "Big Book". He served as a member of Sears' Executive Committee and on the Board of Directors of Sears Canada. Costello began his career at Procter & Gamble, where he held a number of senior marketing and brand management positions. He also served as Senior Vice President of Sales and Marketing at Pepsi-Cola, USA.

A frequent speaker on industry trends, Costello was named one of the 30 Most Influential People in Marketing by Advertising Age, one of the Top 10 Merchants by DSN Retailing Today and was elected to the Retail Marketing Hall of Fame in 1997. He is a past director of The Quaker Oats Company (NYSE) and The Bombay Company (NYSE), and the Direct Marketing Association, and a current director of the American Film Institute (AFI), the Steppenwolf Theatre, and the Georgia Aquarium. Costello is also a director and past chairman of both The Ad Council and the Association of National Advertisers, and chaired the selection committee for the 2006 inductees into the Advertising Hall of Fame.

About Pay By Touch

Pay By Touch ( www.paybytouch.com) is wowing the world one touch at a time as the leader in biometric authentication, personalized marketing and payment solutions. To date, the company's patented biometric services enable three million shoppers to quickly and securely access personal accounts using a finger scan to identify themselves, make purchases, earn rewards and cash checks at 2,400 locations nationwide. It also provides robust payment processing solutions for ACH (electronic checking), card-present and card-not- present debit and credit transactions for 138,000 retail clients and manages personalized rewards programs for 130 million opt-in consumer profiles. Founded in 2002 and headquartered in San Francisco, Pay By Touch employs 700 professionals and holds 50 patents worldwide on secure, convenient and cost- effective transaction solutions.

SOURCE Pay By Touch Krista Thomas of Pay By Touch, +1-415-371-5766, or krista.thomas@paybytouch.com http://www.prnewswire.com Copyright (C) 2006 PR Newswire. All rights reserved.

John Costello Lands at Pay By Touch

The Return of John Costello

Former Home Depot, Sears Exec Lands at Biometric Company Pay By Touch

Longtime marketer John Costello is now co-president of biometric payment company Pay By Touch.

COLUMBUS, Ohio (AdAge.com) -- One of marketing's most-watched players, John Costello, has finally resurfaced: as president of consumer and retail at Pay By Touch, a privately held biometric payment company in San Francisco.

Mr. Costello, a former Advertising Age Power Player and marketing Hall of Famer, who has held high-level marketing positions at Yahoo, Sears Roebuck & Co. and, most recently, Home Depot, will report directly to Pay By Touch founder-CEO John Rogers. The 59-year-old Mr. Costello shares the president title with John Morris, who joined the company in May 2005 after 23 years at IBM.

Passed up CEO offers

"I had a number of CEO opportunities, but at the end of the day I became the most excited about a partnership with John Rogers," Mr. Costello said. "I was excited about the potential of Pay By Touch to transform the relationship among consumers, retailers and manufacturers."

Though he declined to name specifics, Mr. Costello said offers came from "retail, consumer products and technology companies," adding: "They are still coming in." Chicago-based recruiting firm Spencer Stuart handled the Pay By Touch search.

Mr. Costello said that he sees mass marketing evolving into one-to-one relationship marketing, where brands seek ways to isolate their most valuable customers -- something he said Pay By Touch is positioned to capitalize on. He said the company's 3 million members eventually could, with a touch of a finger at a kiosk in a grocery store, receive offers tailored specifically to their needs and shopping history.

As Pay By Touch brings fingerprint payment-scanners to checkout lanes at leading grocery chains, convenience stores and check-cashing facilities nationwide, Mr. Costello's contacts in the retail and marketing world, including his role as a key player in the Association of National Advertisers, will prove useful.

Mr. Costello's unconventional career track led him to the top marketing ranks of Sears and Yahoo before his nearly three-year stint at Home Depot. He was also president at Nielsen Marketing Research and AutoNation and was CEO of MVP.com, before it folded in the late '90s dot-com bust.

Varied career

That varied career, Mr. Costello said, will serve him well at Pay By Touch. "This job goes back to my days at Yahoo and my days at Nielsen," he said. "I know how to help early-stage companies in an emerging technology space." Mr. Costello said that in the 14 months since he left Home Depot, he served as an adviser to a number of private equity firms and merchant banks, and recently joined the board of Aspen Marketing Services, a privately held marketing services company known for its direct-marketing work.

Paycheck Secure - Product of the Day

Pay By Touch Paycheck Secure 8.0

Pay By Touch upgraded its Paycheck Secure technology to allow retailers to deposit all checks with the push of a button.

Pay By Touch Paycheck Secure 8.0

Pay By Touch upgraded its Paycheck Secure technology to allow retailers to deposit all checks with the push of a button. It also offers fingerprint authorization for customers to cash government of payroll checks, more secure transactions, time savings and faster access to funds.

Check 21 is also integrated to allow checks to be deposited using electronic images rather than paper checks. Customers sign up for the check cashing feature by providing a photo ID, two finger scans and a digital photo which is taken in the store.

Customers can then quickly and securely cash payroll checks with a quick and simple finger scan. After a store has completed check cashing for the day, managers can deposit checks to a bank account electronically with the touch of a button. For more information, please visit:

Pay By Touch, Herndon, Va.
(866) 280-1679
www.paychecksecure.com

PBT Lets Customers Pay at the Pump

A few Stop 'n Saves in Colorado are using new biometric readers that scan fingerprints, then charge customers' cards. Its maker says a 7-digit PIN keeps data secure.

By Kristi Arellano, Denver Post Staff Writer

When customers are asked to pay for their purchases at Stop 'n Save stores on the Western Slope, an increasing number of them simply give the finger. Index finger, that is.

Six of the 16 Stop 'n Save gas and convenience stores operated in Colorado by Feather Petroleum began using a biometric payment system this spring that links customers' fingerprints to their checking accounts. The system allows them to pay for their purchases without opening their wallets.

Feather Petroleum joins some 2,500 retailers in 44 states that use payment technology offered by San Francisco-based Pay By Touch.

Grocers including Piggly Wiggly in the southeast and several chains operated by Minneapolis-based SuperValu have adopted the payment technology, and 3 million people are registered for the service.
.

"Identity theft has become such a huge problem," said Bonnie Lightfoot, the company's director of human resources. "This is one way to help control that for our customers."

Customers at the six stations register by scanning their fingerprints and providing a voided check to the store. They can then pay for purchases by scanning their fingers and entering a 7-digit PIN number to verify their identities. Usually that number is their phone number without area code.

Feather Petroleum launched the technology in and near Grand Junction in March. It eventually expects to expand the system throughout Colorado to stores in locations that include Vail, Salida and Winter Park.

John Morris, president and chief operating officer of Pay By Touch, said the company expects to expand to additional Colorado retailers in the future. It has emerged as the top player in the biometric payment sector, snapping up its biggest competitor, BioPay, for $82 million in stock and cash in a deal that closed in January.

The company pitches its system as a way for customers to save time at the checkout line and for retailers to save money by avoiding fees charged by credit and debit-card companies.

Pay By Touch charges a per-transaction fee that is often as much as 60 to 70 percent lower than fees charged by credit-card companies, Morris said. Pay By Touch terminals cost about $300 each to install, and business operators can frequently recoup their investments within eight or nine months, he said.

Critics of the technology worry that it's not advanced enough for widespread retail use.

"A lot of people will buy into it based on convenience," said Lee Tien, a senior staff attorney with the Electronic Frontier Foundation in San Francisco. "But I think the jury is very much out on biometrics as something that is going to have benefit in a lot of areas."

Morris said the combination of the fingerprint image along with the 7-digit identification number eliminates concerns about false positive readings, while false negatives are rare and quickly corrected. To protect its data, the company uses military-grade encryption.

"We take security as our top priority," he said.

While customers may express concerns about privacy, they may ultimately be won over by convenience, said Linda Elliott, a partner with Glenbrook Partners, a consulting firm that specializes in payment systems.

"People will tell you they don't want to give up biometric information. But talk to somebody with a couple of kids in tow, and they'd be thrilled to just slam their thumb down and be done," she said.

Lightfoot said some Stop 'n Save customers raised privacy concerns but came around after they received pamphlets detailing Pay By Touch's privacy and security procedures. More than 1000 people have signed up for the service since it was launched in March, she said.

Staff writer Kristi Arellano can be reached at 303-954-1902 or karellano@denverpost.com.

No Purse Required

MILWAUKEE -- When Katy Weber goes shopping at Roundy's Metro Market in Milwaukee, she doesn't bring a purse, credit card, debit card, check or cash.

All she needs to pay for her groceries is her index finger.

A sensor pad at the checkout counter scans her finger, automatically registers any discounts and then debits her bank account.

For Weber, 28, using the Pay By Touch pad is a matter of convenience. "I don't have to dig around in my purse," she said.

The idea of shopping without bringing a purse or wallet might take some time to catch on, but companies using the finger-scan system say that, store by store, it is gaining acceptance.

Jewel-Osco is the biggest user in the Milwaukee area of the Pay By Touch system, which is the industry leader in the touch-system payment technology. It rolled out the system last spring, and the system is available in all 15 Jewel-Osco stores in Wisconsin.

In Jewel-Osco's four-state area, about 56,000 customers are signed up for it, said Juanita Kocanda, Jewel-Osco's manager of public affairs.

"It's very well received," Kocanda said. "We get positive feedback, especially from the people who write checks, because it comes right out of your checking account and you don't have to write a check."

Nationally, the Pay By Touch system is used at more than 2,500 retail locations, said Shannon Riordan, spokeswoman for the four-year-old San Francisco firm. She said that, combined with a check-cashing system the company sells, it has signed up over 3 million consumers.

The finger system is more secure than using a credit or debit card or writing a check, because there are no numbers on a card or check that an identity thief could steal, Riordan said. Pay By Touch users are required to punch in a search code to start the transaction -- usually easy-to-remember digits like a telephone number -- but without the finger scan, no one else can gain access to the account.

"Overall, for merchants and shoppers alike, it greatly reduces the chances of fraud at the point of sale," Riordan said.

Riordan stressed that the finger image used to authenticate a transaction is not an actual full fingerprint. "It uses 40 data points out of hundreds, from your finger," she said. "That is the amount of data that gets encrypted right then and there and it cannot be reproduced into a full fingerprint.

But surveys show some consumers, as much as they like the sureness of biometric identifiers, still find something Big Brotherish about letting anyone scan the print side of a finger, said Avivah Litan, a financial technology consultant with the firm Gartner Inc. in Stamford, Conn.

"Some people like the convenience, other people think it's a big privacy imposition," Litan said.
Riordan said there is nothing to worry about, even though she understands why it's a concern.
"If we don't respect people's privacy -- if we aren't dedicated to that -- we are going to fail as a business," she said. "So we are motivated. This is a very, very important promise that we make and keep with our Pay By Touch members."

At Roundy's Metro Market, which has used the system for two years in a pilot program, fear of having a fingerprint in a database doesn't seem to be an issue, said customer service manager Robin Moga. She said that might be because of the store's clientele, which includes many young adults.

"They love the new technology. They are all about it," Moga said. Customers sign up for Pay By Touch at no charge at kiosks in stores where it's used. A scanner at the kiosk records the finger data needed. The sign-up process requires a driver's license, a voided check and, if desired, a preferred shopper card for discounts. Although retail stores such as supermarkets are the "early adopters" of the finger-scan payment technology, other types of retailers are showing an interest, Riordan said. "People, as time progresses, will see it in more and more places, and it will become commonplace," she said.

ATM Direct Certified by AmbironTrustWave

ATM Direct, a Pay By Touch company, that was the first to introduce PIN Debit for Internet purchases, has been certified by AmbironTrustWave.

ATMDirect is enrolled in AmbironTrustWave's TrustKeeper® remote compliance program to validate compliance with the Payment Card Industry (PCI) Data Security Standard supported by all the major credit card associations including: American Express, Diners Club, Discover, JCB, MasterCard International, Visa International and Visa USA.

Based upon information provided by ATMDirect regarding its policies, procedures, and technical systems that process and/or transmit cardholder data, and the TrustKeeper scan of those systems, ATMDirect has performed the required procedures to validate compliance with the PCI Data Security Standard.

AmbironTrustWave's Trusted CommerceSM service designation indicates that ATMDirect protects credit card and order information in accordance with payment card industry best practices.For more information, please visit: www.atwcorp.com

Pay By Touch uses a patent-pending process to safely encrypt PIN Debit Numbers by allowing the user to enter them with their mouse instead of key strokes. The box on the left comes up and the user clicks the first digit of their existing (no new PIN numbers required) Personal Identification Number. The box then shuffles the numbers and the user repeats the process with the second, third and fourth digit of their PIN numbers. By allowing the user to use their mouse, and by shuffling the numbers after each entry, keyloggers cannot hack into the user's keystrokes as they enter their PIN number.

Biometric Acceptance Gains Appeal

One-touch shopping

In a sharp contrast from privacy advocates concerns, consumers are becoming increasingly accepting of innovative technology that uses finger scans to buy groceries

By PAUL GORESmailto:GORESpgores@journalsentinel.com
Posted: Sept. 9, 2006

When Katy Weber goes shopping at Roundy's Metro Market in Milwaukee, she doesn't bring a purse, credit card, debit card, check or cash.

"I don't have to dig around in my purse," says Roundys Metro Market shopper Katy Weber of the Pay By Touch system for buying groceries. "I simply love it"

Early Detractors Coming Around

The Pay By Touch system uses 40 data points of hundreds on the finger to scan a print, says a company spokeswoman. She says privacy is protected under the system. Regardless of what privacy advocates are preaching, this technology actually fortifies privacy. I'll give you two examples. Instead of paying by check, which consists of a piece of paper advertising all the necessary ingredients necessary for ID theft, from your name and address right down to your bank, it's routing number and a consumers checking account number, there is absolutely no account information whatsoever that can be lifted.

So, Instead of 8-10 people who see the check on the way to the federal reserve, nobody does. In fact, that brings me to my second point. If someone is reluctantly on welfare, instead of being self-conscious about pulling out their WIC card, no one, from the cashier to the customer waiting behind, knows what method of payment they are using. This pragmatically would suggest that it increases privacy instead of the sound bytes from those who don't fully understand the military level security built into this platform.

All she needs to pay for her groceries is her index finger.

A sensor pad at the checkout counter scans her finger, automatically registers any discounts and then debits her bank account. For Weber, 28, using the Pay By Touch pad is a matter of convenience. "I don't have to dig around in my purse," she said.

The idea of shopping without bringing a purse or wallet might take some time to catch on, but companies using the finger-scan system say that, store by store, it is gaining acceptance.

Jewel-Osco is the biggest user in the Milwaukee area of the Pay By Touch system, which is the industry leader in the touch-system payment technology. It rolled out the system last spring, and the system is available in all 15 Jewel-Osco stores in Wisconsin.

In Jewel-Osco's four-state area, about 56,000 customers are signed up for it, said Juanita Kocanda, Jewel-Osco's manager of public affairs.

"It's very well received," Kocanda said. "We get positive feedback, especially from the people who write checks, because it comes right out of your checking account and you don't have to write a check."

Nationally, the Pay By Touch system is used at more than 2,000 retail locations, said Shannon Riordan, spokeswoman for the 4-year-old San Francisco firm. She said that, combined with a check-cashing system the company sells, it has signed up 2.9 million consumers.
System is secure, company says

The finger system is more secure than using a credit or debit card or writing a check, because there are no numbers on a card or check that an identity thief could steal, Riordan said. Pay By Touch users are required to punch in a search code to start the transaction - usually easy-to-remember digits like a telephone number - but without the finger scan, no one else can gain access to the account.

"Overall, for merchants and shoppers alike, it greatly reduces the chances of fraud at the point of sale," Riordan said. Riordan stressed that the finger image used to authenticate a transaction is not an actual full fingerprint. "It uses 40 data points from your finger," she said. "That is the amount of data that gets encrypted right then and there."

Some Privacy advocates are concerned with the system, however, Riordan said there is nothing to worry about, even though she understands why it's a concern.

"If we don't respect people's privacy - if we aren't dedicated to that - we are going to fail as a business," she said. "So we are motivated. This is a very, very important promise that we make and keep with our Pay By Touch members."

At Roundy's Metro Market, which has used the system for two years in a pilot program, fear of having a fingerprint in a database doesn't seem to be an issue, said customer service manager Robin Moga. She said that might be because of the store's clientele, which includes many young adults.

"They love the new technology. They are all about it," Moga said.

Looking for new markets

Customers sign up for Pay By Touch at no charge at kiosks in stores where it's used. A scanner at the kiosk records the finger data needed. The sign-up process requires a driver's license, a voided check and, if desired, a preferred shopper card for discounts.

Although retail stores such as supermarkets are the "early adopters" of the finger-scan payment technology, other types of retailers are showing an interest, Riordan said. "People, as time progresses, will see it in more and more places, and it will become commonplace," she said.

Whole Foods Introduces Pay By Touch

Pay By Touch technology in use at Whole Foods Market, Sunflower Stores

Friday, September 08, 2006
Tracy Turner - THE COLUMBUS DISPATCH

Forget your wallet? No problem. Just let your fingers do the paying.

Two organic- and naturalfoods retailers are taking biometrics to the grocery-checkout lane.
Whole Foods Market and Sunflower Market, are introducing pay-by-touch technology to central Ohio grocery shoppers.

Using the touch of a finger, consumers can pay for their purchases at both stores, eliminating the need to carry any form of money or identification.

Whole Foods Market rolled out the payment option in its Columbus store this week. Sunflower Market, which opens its first Columbus store Wednesday, also will offer the payment system.

The fingertip-payment system identifies a customers’ digital fingerprint to charge the customer’s checking account or credit card. Customers provide the store a voided check or credit-card number, which then is used to create the customer’s account.

Customer reaction to the concept has been mixed. Sharon Michael, of Dublin, said she doesn’t like the idea because it could tempt shoppers to spend more money than they intended. "I’d rather pay in cash, so if I don’t have the money on me, I won’t buy it," she said, as she sat outside Whole Foods yesterday eating lunch.

Her meal companion disagreed.

"I think it’s incredible," said Jan Jenkins, also of Dublin. "That way you don’t have to use credit or debit cards that can be lost or stolen. It’s just like when ATMs first came out and people were worried about the new technology, but we all use them now."

Whole Foods and Sunflower are two of the more than 2,100 stores in 44 states that offer the payment systems, according to Pay By Touch. The San Francisco company has been offering the technology to retailers nationwide since 2002.

The stores see the system as one of many payment options. They say they’ve created safeguards to keep customers’ information private.

"We’ve seen mothers juggling their children on their hips, trying to juggle their child while making their payments, and we just see this as a way to make it a little easier," Whole Foods spokeswoman Michelle Mooney said.

The Pay By Touch system also can help retailers process payments more quickly, said Glenn Backus, general manager of Sunflower Market.

tturner@dispatch.com

PBT to Provide Check Cashing to 78 Lowe's

Lowe's Pay and Save, Inc. and Pay By Touch today announced the introduction of biometric check-cashing to 78 stores in the panhandle of Texas and into New Mexico. Paycheck Secure, powered by biometrics leader Pay By Touch, uses finger-scanning technology to enable customers to quickly and securely cash government or payroll checks.

Paycheck Secure benefits both customers and retailers. The new system reduces fraud and enables retailers to keep check cashing fees reasonably priced for consumers.

"Paycheck Secure provides my customers a new level of convenience and discretion," says Roger Lowe, Jr., CEO of Lowe's Pay and Save, Inc. "I can provide better customer service by knowing my shoppers without having to hassle them for their ID. Paycheck Secure creates a sense of trust and privacy which makes customers want to come to my store more often."

Customers can sign up for Paycheck Secure in minutes at Lowe's Pay and Save, Inc. grocery stores. Customers simply provide a photo ID, two finger scans, and a digital photo which is taken right in the store. No bank account information is necessary. Once enrolled, no ID is required, and customers can quickly and securely cash payroll checks with a quick and simple finger scan.
"Pay By Touch is helping retailers like Lowe's Pay and Save, Inc. significantly reduce fraud while providing better customer service," said John Rogers, founder, chairman, and CEO of Pay By Touch. "Customers need and deserve a service like this."

More than $8 billion in checks have been cashed nationally using Paycheck Secure. In January, Pay By Touch acquired BioPay, the developer of the biometric check cashing system. To date, more than 2.9 million consumers are using the system to pay and cash checks -- primarily in retail locations.

For additional information about the Paycheck Secure product, visit. www.paychecksecure.com .

About Lowe's Pay and Save

Lowe's Pay and Save, Inc. is a family owned retail grocery store chain that was established in 1964. Today, the company has approximately 3300 teammates in 81 stores located throughout West Texas, New Mexico and one store in Arizona.