“You go to the ATM, the ATM shows you a QR code generated by the banking software on the ATM that updates every 30 seconds. When you scan the QR code, it sends a message back to the banking system. The bank then says ‘OK, let’s send an authentication request,’ which takes the form of your phone waking up to look at it, which extracts your biometric data,” says Hector Hoyos of Hoyos Labs.
The days of using your ATM card and password may be numbered. Instead, you could soon be using your face, voice or fingerprint to get your money. With 1U from Hoyos Labs, you can use biometrics like your face or fingerprint to log into all your online services without having to remember a password, including banking sites, email and social networks. The next step is to apply the same technology that still uses your phone to ATMs.
As for the main motivations for such a system, Hoyos says there are really two: security and convenience.
“In this case, you scan the QR code, look at it and that’s it. So this transaction is about 50 percent faster,” Hoyos says.
As for security, Hoyos says all transactions are encrypted multiple times. It also helps curb skimming, which is estimated to occur in one in five Americans. Skimming involves thieves placing a barely noticeable device over the card reader to steal information from the card’s magnetic stripe. As for convenience, there’s no need to remember pins anymore.
Hoyos Labs says it is in talks with several banks across the country that are interested in possibly implementing this technology this year.
One of the big advantages for banks is that this all happens with a simple software upgrade. That means just about any ATM, even old ones, can use the feature.