DENVER -- When customers are asked to pay for their purchases at Stop 'n Save stores on the Western Slope in Denver, an increasing number of them simply give the finger. The index finger, that is.
Six of the 16 Stop 'n Save gas and convenience stores operated in Colorado by Feather Petroleum began using a biometric payment system this spring that links customers' fingerprints to their checking accounts, according to a report in the Denver Post. The system allows them to pay for their purchases without opening their wallets.
Feather Petroleum joins about 2,200 retailers in 44 states that use payment technology offered by San Francisco-based Pay By Touch.
Grocers including Piggly Wiggly in the southeast and several chains operated by Minneapolis-based SuperValu have adopted the payment technology, and 3 million people are registered for the service.
"Identity theft has become such a huge problem," Bonnie Lightfoot, Feather Petroleum's director of human resources, told the newspaper. "This is one way to help control that for our customers."
Customers at the six stations register by scanning their fingerprints and providing a voided check to the store. They can then pay for purchases by scanning their fingers and entering a 10-digit PIN number to verify their identities.
Feather Petroleum launched the technology in March.
John Morris, president and chief operating officer of Pay By Touch, said the company expects to expand to additional Colorado retailers in the future. It has emerged as the top player in the biometric payment sector, snapping up its biggest competitor, BioPay, for $82 million in stock and cash in a deal that closed in January.
The company pitches its system as a way for customers to save time at the checkout line and for retailers to save money by avoiding fees charged by credit and debit-card companies.
Pay By Touch charges a per-transaction fee that is often as much as 60% to 70% lower than fees charged by credit-card companies, Morris said. Pay By Touch terminals cost about $300 each to install, he said.
Critics of the technology worry that it's not advanced enough for widespread retail use.
"A lot of people will buy into it based on convenience," said Lee Tien, a senior staff attorney with the Electronic Frontier Foundation in San Francisco. "But I think the jury is very much out on biometrics.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.