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The payments industry is in the midst of a profound transformation. For decades, the card on file model dominated commerce, enabling businesses to securely store payment credentials, streamline transactions, and drive repeat purchases. Giants like Amazon, PayPal, Apple Pay, and Google Pay thrived on the efficiencies this model provided, particularly in high-frequency sectors like e-commerce, retail, and subscriptions.
Yet, this foundational model is evolving. The future of payments is moving toward ID on file, a system that eliminates physical or digital cards entirely, instead leveraging biometric identifiers such as facial recognition or palm scans. This shift represents a strategic overhaul, offering not only convenience but also greater personalization, enhanced security, and reduced costs for merchants.
The biometric payment market, valued at $34.2 billion in 2022, is projected to grow at a staggering 20.4% compound annual growth rate (CAGR) through 2030. As businesses look to align with this trend, industry leaders like Amazon and PopPay are at the forefront, using innovative biometric solutions to reshape the future of transactions.
Amazon’s Expansion into ID on File
Even as a leader in card on file systems, Amazon has made significant strides in biometric payments with Amazon One, its palm recognition technology. Initially launched in 2020, Amazon One has expanded beyond Amazon Go stores to over 500 Whole Foods Market locations and is now being adopted by third-party businesses.
Amazon One’s Strategic Moves
Retail Expansion: Beyond Whole Foods, Amazon One is powering payments and loyalty integration at Panera Bread, where customers can link their MyPanera accounts and pay with a simple palm scan.
Sports and Entertainment: Venues like Coors Field use Amazon One for age verification and alcohol purchases, eliminating the need for physical IDs.
Consumer Adoption: By mid-2023, Amazon One had processed over 3 million transactions, reflecting growing comfort with biometric payments.
Despite its progress, Amazon faces challenges in addressing privacy and security concerns—a critical step for widespread biometric payment adoption.
Card on File: The Legacy Model
The card on file model succeeded because it addressed key consumer and merchant needs:
Convenience for Consumers: Stored credentials eliminated the friction of entering payment details repeatedly. 80% of online shoppers now use stored credentials, with 89% of millennials and bridge millennials leading adoption.
Loyalty for Merchants: Businesses benefited from higher conversion rates and repeat purchases, particularly in industries like retail, groceries, and subscriptions.
Predictable Revenue: By reducing cart abandonment, card on file systems provided a steady flow of recurring payments.
However, the model’s reliance on card credentials created vulnerabilities:
Fraud Risks: Physical and digital cards are susceptible to breaches and misuse.
Operational Costs: High transaction fees from card networks burden businesses.
Evolving Expectations: Today’s consumers demand faster, more personalized, and seamless payment experiences.
ID on File: Payments Evolving Through Biometrics
The rise of ID on file represents a paradigm shift in payments. By replacing card credentials with biometric data, ID on file systems enable faster, more secure, and frictionless transactions.
The Strategic Appeal of ID on File
Enhanced Security: Biometric authentication eliminates fraud risks by ensuring the payer’s identity matches the account.
Seamless Convenience: Transactions occur with a simple scan, removing the need for cards or devices.
Integrated Personalization: Systems like PopPay use purchase history and loyalty data to create tailored customer experiences.
PopPay: Leading the ID on File Revolution
While many companies are exploring biometric payment solutions, PopPay, powered by PopID, is gaining market share rapidly with its focused, strategic approach. By targeting high-volume sectors and building partnerships, PopPay is driving the adoption of ID on file systems.
1. Market Focus: High-Frequency, High-Volume Industries
PopPay is transforming sectors where speed and convenience are critical:
Restaurants: Over 100 brands, including Steak ’n Shake, Bojangles, and Port of Subs, use PopPay to streamline payments, integrate loyalty programs, and boost average ticket sizes.
Retail: Partnerships with Toshiba and Panasonic embed PopPay into kiosks and point-of-sale systems, enabling biometric payments across retail environments.
College Campuses: With a focus on digitally native students, PopPay is expanding to campuses nationwide, backed by a $10 million Series B funding round.
2. Strategic Partnerships
PopPay’s rapid adoption is fueled by collaborations with major players:
Toshiba: Integrating PopID’s facial recognition into the Elera Commerce Platform, enabling seamless transactions in retail and hospitality.
J.P. Morgan Payments: Deploying biometric-enabled terminals to unify online and in-store payment systems.
Panasonic: Adding PopPay to ClearConnect Kiosks, transforming the drive-thru and in-store experience.
Steak ’n Shake: Rolling out PopPay’s face-based loyalty and payment systems across 500+ locations, increasing loyalty participation and reordering efficiency.
3. Measurable Impact
4 million+ biometric transactions have been processed by PopPay, reflecting growing consumer acceptance.
Merchants using PopPay report a 3-4% increase in ticket sizes, driven by personalized upselling and faster transaction times.
Strategic Implications of the Shift
The move from card on file to ID on file represents a transformational shift in the payments industry:
From Cards to Biometrics: Eliminating cards reduces friction and enhances security, transforming payments into a seamless process.
From Transactions to Engagement: Biometric systems enable deeper customer engagement through loyalty integration and personalized experiences.
From Cost Centers to Growth Drivers: By lowering fees and enabling higher sales, ID on file systems turn payments into a strategic advantage for businesses.
The Broader Market Opportunity
The growth of the biometric payment market underscores the importance of this shift:
Valued at $34.2 billion in 2022, the market is expected to grow at a 20.4% CAGR through 2030.
Factors driving this growth include enhanced security, convenience, and increasing adoption of contactless technologies.
Consumer comfort with biometrics is rising, with 27% of U.S. adults expressing comfort with palm-to-pay systems in 2023, up from 22% in 2019.
The Strategic Shift to ID on File
The transition from card on file to ID on file is not just a technological evolution—it’s a strategic revolution that redefines how businesses and consumers interact with payments. Companies like Amazon and PopPay are leading the charge, leveraging biometrics to deliver faster, safer, and more personalized experiences.
For businesses, embracing ID on file systems is no longer optional—it’s essential to remain competitive in a rapidly changing market. As the payments ecosystem evolves, one thing is clear: your identity is the future of payments.
by Sheela Ursal