digiPROOF is a payment system which is based on biometrics and allows customers to pay with their fingerprint. EDEKA, a big German supermarket chain has introduced the digiPROOF system in one of their stores to test how customers accept the system. Up to now, customer reactions have been very positive and EDEKA is at the moment implementing the system in several other stores and plans to roll out the system Germany wide in the long run. In the past years a great variety of new and innovative payment systems have been introduced into the market. None of them however could gain a substantial market share and replace traditional payment methods. The aim of this dissertation was therefore to analyze if payment systems based on fingerprint technology have the potential to sustain in the market and if they might be able to supplement or even replace traditional payment systems.
In order to assess digiPROOF a framework of success factors for payment systems was established in this dissertation. Subsequently a survey of users as well as non-users of the system was carried out and the digiPROOF system was evaluated according to the framework of success factors to draw a conclusion on whether fingerprint based payment systems are able to sustain successfully in the market and how the future payment market might look like.
The approach of evaluating the system from a theoretical point of view through the framework of success factors and triangulating the results through empirical findings by questioning users as well as non-users allowed to draw a holistic picture and make a positive assumption on the future prospects of fingerprint based payment systems.
Table of Contents
1 INTRODUCTION
1.1 BACKGROUND AND RATIONALE
1.2 RESEARCH QUESTION AND OBJECTIVE
1.3 STRUCTURE OF THE DISSERTATION
1.4 DEFINITIONS
2 METHODOLOGY
2.1 QUALITATIVE APPROACH
2.2 RESEARCH METHOD (CASE STUDY)
2.3 CASE SELECTION
2.4 THE ROLE OF THE RESEARCHER
2.5 DATA GATHERING
2.5.1 Data sources
2.5.2 Interviews
2.5.3 Questionnaires
2.6 DATA ANALYSIS
2.7 OBJECTIVENESS OF ANSWERS
2.8 RESEARCHER BIAS
3 THEORETICAL FOUNDATIONS OF PAYMENT SYSTEMS
3.1 HISTORY AND DEVELOPMENT OF PAYMENT SYSTEMS
3.2 CLASSIFICATION OF PAYMENTS
3.3 SUCCESS FACTORS OF PAYMENT SYSTEMS
3.3.1 Overview
3.3.2 Cost
3.3.3 Convenience
3.3.4 Security
3.3.5 Privacy
3.4 OVERVIEW OF PAYMENT SYSTEMS
3.4.1 Cash
3.4.2 Electronic cash and smart cards
3.4.3 Credit Cards
3.4.4 Debit Cards (EC-Karte)
3.4.5 Mobile payment systems
3.4.6 Biometric payment systems
3.4.7 Other approaches
4 THE CASE: DIGIPROOF FINGERPRINT PAYMENT SYSTEM
4.1 INTRODUCTION TO DIGIPROOF
4.2 INTRODUCTION TO THE EDEKA GROUP
4.2 REASONS FOR EDEKA TO INTRODUCE DIGIPROOF
4.3 EVALUATION OF DIGIPROOF BY EDEKA
5 RESULTS OF THE SURVEY
5.1 SURVEY DESIGN AND RESPONSE RATE
5.2 GENERAL AND DEMOGRAPHIC DATA
5.3 ASSESSMENT OF DIGIPROOF BY NON-USERS
5.4 ASSESSMENT OF DIGIPROOF BY REGISTERED USERS
6 EVALUATION OF DIGIPROOF
6.1 OVERVIEW
6.2 COST
6.3 CONVENIENCE
6.4 SECURITY
6.5 PRIVACY
7 CONCLUSION AND OUTLOOK
Research Objective and Scope
The primary objective of this dissertation is to determine whether payment systems utilizing fingerprint technology possess the potential to either supplement or replace traditional payment methods in the future. By conducting a detailed case study of the "digiPROOF" system implemented at EDEKA, the research investigates user acceptance, technical performance, and strategic viability, aiming to provide a holistic assessment of biometric payment systems in real-world retail environments.
- Analysis of success factors for payment systems (cost, convenience, security, privacy).
- Evaluation of the digiPROOF system from both merchant and customer perspectives.
- Empirical survey data comparing user and non-user attitudes toward biometric payments.
- Assessment of current trends in electronic and mobile payment systems.
- Comparison of digiPROOF against traditional payment methods like cash, credit, and debit cards.
Excerpt from the Book
1.1 Background and rationale
The exchange of goods between human beings is one of the most natural things which dates back long before the beginning of recorded history. As trade became more frequent and complex, abstract representations for value were created and money was “invented” (Asokan, Janson, Steiner, & Waidner, 1997). Especially in the last decades the options available for money transfer and payments have increased. In the seventies the credit card became widespread and “since then there has been a profusion of other methods that have gained widespread adoption, including different forms of direct debits, retail store cards, automatic payment cards (e.g. Switch, or EFTPOS), and, more recently still, telebanking and Internet banking” (Lawson & Todd, 2003, p. 72).
Especially the growth of the Internet and electronic commerce (e-commerce) led to a demand for new payment methods which were meant to be better suited for the web than traditional payment systems (Panurach, 1996). Many researchers and companies tried to develop digital payment systems which could be used securely on the Internet and which also provided the means for paying very small sums, known as micro or pico payments. One approach was to develop a virtual, cash like system (e-cash or e-money). Examples of e-cash systems can be found in Jakobsson and Yung (1996) or Peha and Khamitov (2003). Apart from e-cash systems a variety of other approaches were presented and introduced into the market of payment systems. They include such approaches as pre-paid cards, payment via the phone bill, smart cards, mobile phone based payment systems and many more (Bünte, 2004).
Summary of Chapters
1 INTRODUCTION: Outlines the background of evolving payment methods, establishes the research question regarding the viability of fingerprint-based systems, and defines key terms used throughout the study.
2 METHODOLOGY: Describes the qualitative case study approach used to evaluate digiPROOF, including details on data gathering via interviews and user/non-user surveys, as well as the analytical framework.
3 THEORETICAL FOUNDATIONS OF PAYMENT SYSTEMS: Provides a comprehensive literature review on the history, classification, and critical success factors (cost, convenience, security, privacy) of various global payment systems.
4 THE CASE: DIGIPROOF FINGERPRINT PAYMENT SYSTEM: Introduces the digiPROOF technology and the implementation at EDEKA, discussing the merchant's motivations and the operational characteristics of the system.
5 RESULTS OF THE SURVEY: Presents empirical findings from the survey, including demographic data, user acceptance levels, and the motivations behind registering for or rejecting the fingerprint payment solution.
6 EVALUATION OF DIGIPROOF: Critically evaluates the digiPROOF system against the established success factors, comparing its performance in cost, convenience, security, and privacy against traditional payment methods.
7 CONCLUSION AND OUTLOOK: Synthesizes the research findings to draw a final conclusion on the potential of biometric systems and offers an outlook on future trends in the payment landscape.
Keywords
Payment Systems, Biometrics, Fingerprint Recognition, digiPROOF, EDEKA, User Acceptance, Convenience, Security, Privacy, Electronic Payments, Mobile Payment, Retail Technology, Case Study, Customer Retention, Data Protection.
Frequently Asked Questions
What is the core focus of this dissertation?
The work investigates the future prospects of payment systems based on fingerprint technology, specifically analyzing whether they can successfully supplement or replace established traditional payment methods.
What are the primary themes discussed in the research?
The research centers on identifying critical success factors for payment systems, such as cost-efficiency, user convenience, technical security, and consumer privacy, while exploring the integration of biometric solutions in retail.
What is the ultimate research objective?
The main goal is to evaluate if digiPROOF, a fingerprint-based payment solution, meets the necessary success criteria to gain a critical mass of users and achieve long-term market sustainability.
Which scientific methodology was utilized?
The study employs a qualitative case study methodology, triangulating data from interviews with stakeholders (merchant and provider) and quantitative/qualitative surveys among system users and non-users.
What topics are covered in the main body of the work?
The main body covers the theoretical history and classification of payments, a detailed technical and strategic overview of digiPROOF, and an empirical survey analysis assessing its performance in real-world retail.
Which keywords best characterize this academic work?
Key terms include Payment Systems, Biometrics, Fingerprint Recognition, User Acceptance, Convenience, Security, Privacy, and Retail Technology.
What are the most frequent reasons given by non-users for not registering with digiPROOF?
The most common reasons are a strong preference for cash due to better expenditure control, general data protection or security concerns, and the perception that existing payment methods are already sufficient.
How does digiPROOF handle the security of biometric templates?
The system uses an encrypted hash algorithm to store reference points of fingerprints, ensuring that the original image cannot be reconstructed from the stored data.
What is the main advantage of digiPROOF from the merchant's perspective?
Merchants benefit from a more efficient, lower-cost payment process compared to traditional credit/debit systems, better management of return debit notes, and increased customer retention.
- Arbeit zitieren
- Diplom Kaufmann; Master of Computing Markus Mayer (Autor:in), 2006, The future of payment systems - A case study on digiPROOF, a fingerprint based payment system, München, GRIN Verlag, https://www.grin.com/document/67763
