China’s top fintech adviser sees ‘bright prospects’ for facial recognition payment systems
- This year is expected to see the first widespread adoption of facial recognition payments, with an estimated 118 million Chinese users embracing it
- Despite concerns over data privacy, the use of facial recognition for payments will expand rapidly in China, says fintech official
China’s top tech adviser for the financial sector sees “bright prospects” for facial recognition payment systems despite lingering concerns over privacy and data security.
The artificial recognition-powered payment method is expected to be widely used across the country because it offers convenience and efficiency, according to Chen Jing, a member of the State Council’s Advisory Committee for State Information and former chief of the central bank’s technology division.
Still, regulations need to be in line with the technology, which means limiting use to qualified service providers and capping the amount of payment allowed, Chen told The Beijing News in a report on Thursday.
“Development is of overriding importance because falling behind is the biggest cause for concern,” Chen was quoted as saying. “Through dedicated exploration and efforts, face-scan payment will win recognition from society.”
His remarks come as facial recognition, the most widely used AI application, is quickly becoming ubiquitous in China, which has targeted global leadership in AI by 2030. The country is home to more than half of the world’s AI start-ups valued at US$1 billion or above, according to CB Insights, a research firm that tracks venture capital activity.
While face-scanning is used widely in China for applications such as unlocking phones, preventing toilet paper theft, and creating personal avatars, its use in the financial sector requires the highest quality and security standards.