Pay-by-Palm Privacy Concerns

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Pay-by-Palm Privacy Concerns
Short Title Pay-by-Palm Privacy Concerns
Location United States
Date August 21, 2023

Solove Harm Surveillance, Identification, Information Processing, Invasion, Information Dissemination
Information Biometric Information, Financial Information, User Age Verification, Payment card information
Threat Actors Amazon

Individuals
Affected Consumers
High Risk Groups Unique Biometric Characteristics, Ethnic Minority
Tangible Harms Potential for identity theft, Financial fraud, Discrimination, Psychological Stress, Loss of Trust

The article discusses the growing use of biometric payment systems, like Amazon's pay-by-palm, raising convenience for consumers while also sparking significant privacy and security concerns among privacy advocates and users.

Description

The article delves into the expanding adoption of biometric payment systems, such as Amazon's pay-by-palm technology, that allow consumers to make payments and confirm their identity using physical characteristics like their palm or face. Amazon is extending this technology to over 500 Whole Foods Market stores by the end of the year. While these systems are seen as more secure and convenient for users, they have raised significant privacy concerns. Privacy advocates worry that sensitive biometric data could be at risk of theft or misuse, and some users are concerned about the potential for abuse by law enforcement agencies. Additionally, the article highlights the growing trend of using biometrics in payments, with nearly $5.8 trillion in annual payments expected to be made using biometrics by 2026, according to forecasts. Despite the convenience, there is a call for caution in how biometric data is handled and protected.

Laws and Regulations

(740 ILCS § 14/). Biometric Information Privacy Act.
California Consumer Privacy Act of (2018)
Children's Online Privacy Protection Rule (2000)

Sources

https://news.bloomberglaw.com/privacy-and-data-security/pay-by-palms-promised-convenience-clashes-with-privacy-concerns