- Vietnam mandates facial scans for large bank transfers.
- Tech firms rush to provide authentication services.
- Regulation aims to boost fintech sector despite security concerns.
Smile for your Banh Mi
Vietnam has introduced a game-changing rule in banking: facial scans for domestic transfers exceeding 10 million dong (US$393).
This biometric authentication compares users’ facial scans from smartphones against a national ID database, aiming to combat online fraud that cost Vietnamese consumers up to 10 trillion dong in 2023.
Companies like Wee Digital, Trusting Social, and NPay are at the forefront, providing banks biometric authentication services. These solutions offer enhanced security compared to device-based systems like Apple’s Face ID.
However, the new requirement poses technical challenges, demanding minimal transaction delays despite the added security layer.
A new face for fintech
The regulation could make Vietnam’s fintech sector more attractive to foreign entrants, according to Huy Pham from RMIT University.
However, concerns persist about data security and potential barriers for smaller fintech firms.
Despite these challenges, experts believe biometric authentication is a crucial step towards Vietnam’s cashless future.
To read the original article: https://www.techinasia.com/facial-scan-buy-banh-mi-vietnam
