VeriTrans Provides Facial Recognition Payment Service for “Toyama-city Facial Recognition System Pilot Program” with NEC

VeriTrans Inc. (HQ: Tokyo; Representative Director and President: Hiroshi Shino; VeriTrans), a payment service provider and subsidiary of Digital Garage, Inc. (TSE first section: 4819; HQ: Tokyo; Representative Director, President Executive Officer and Group CEO: Kaoru Hayashi; DG), provides a facial recognition payment service with NEC Corporation (TSE first section: 6701; HQ: Tokyo; President and CEO: Takashi Niino; NEC) for “Toyama-city Facial Recognition System Pilot Program,” conducted by Toyama-city, from October 1, 2020 to March 31, 2021.

The facial recognition payment service, combined NEC’s facial recognition solution with VeriTrans’ credit card payment service, is a payment solution that can be used for a wide range of applications.

■ Outline of “Toyama-city Facial Recognition System Pilot Program”
The “Toyama-city Facial Recognition System Pilot Program” uses facial recognition data as a type of common ID for facial recognition payments at 30 stores near the central district of Toyama-city and in the Iwase region, including cultural facilities like the Toyama Glass Art Museum and Toyama Municipal Folk Museum and other various stores.

Consumers using facial recognition payment register their user information* in advance on the smartphone face registration website, including facial data and credit card information. Facial recognition is performed on a dedicated tablet device installed in the store when they purchase products or use services, and the payment is completed with the credit card linked to their facial information.

Facial recognition provides better convenience to users, as they can pay speedily without having to present a card, smartphone, or other device. Also, users can use the system without worrying about security, because the authentication is based on the user’s unique facial data, it is difficult to impersonate and helps prevent identity theft. In addition, this system reduces the risk of COVID-19 infection since there is no need to accept or hand over cash.

In this pilot program, VeriTrans provides credit card payment service and “One-click continual charge function.” “One-click continual charge function” enables users to pay with only their user IDs that are automatically generated when registering facial data. Users’ credit card information will be automatically linked to their user IDs at the time of service registration.

■ Background
With an eye to the rapidly falling birthrate, ageing population, and population decline in the future, Toyama-city is making strategic tourism promotion efforts to be a city that is chosen by people for its economy, society, culture, and other features in addition to tourism. This pilot program utilizes biometric authentication technology and a cashless payment platform to offer safe, pleasant tourism experiences, mainly to nearby residents and tourists. In addition to facial recognition payments and measures to attract tourists, this pilot program will also help vitalize the overall region.

■ “VeriTrans4G” credit card payment service
“VeriTrans4G” is a comprehensive payment solution offering high functionality and the highest level of security. In addition to basic payments such as credit cards, convenience stores, and bank payments, it also supports many payment options including electronic money, carrier payments, digital wallets, various ID payments and international payments.

The “VeriTrans4G” credit card payment service is based on a system with the highest level of security in Japan, and is designed to prevent any credit card information from being retained or passed through the participating merchants’ servers or E-commerce sites. It comes standard with basic functions such as continual charges and card information updating, as well as a wide range of security options to prevent fraudulent usage. “VeriTrans4G” is also an expandable system, so it can be used for physical stores and omnichannel developments as well as e-commerce.

The “One-click continual charge function” can be utilized to pay for regular online shopping purchases, monthly memberships, and more. It supports various cashless payment formats such as biometric payments (including facial and fingerprint recognition) like this proof of concept, as well as barcode payments via smartphone apps supporting multiple stores and online services.

■ Future developments
By providing a safe, secure cashless payment service to Toyama-city, VeriTrans will promote safe, pleasant tourism experiences for nearby residents and tourists, and also help vitalize the city’s business operators and the entire community.

Toyama-city is working on Smart City initiatives, utilizing ICT for more efficient and advanced city functions and services, as a priority business. Local governments across Japan are increasing their Smart City initiatives due to the second wave of COVID-19 and for living in the “New Normal” era to co-exist with the virus. VeriTrans will work with its partners to provide cashless payment platforms, including biometric authentication payment, and help local governments establish Smart Cities.

* Smartphone registration website: https://member.toyama.digitalid.nec.com

【About VeriTrans】 https://www.veritrans.co.jp/company/
A payment provider that carries out online payment, POS payment, barcode / QR Code payment, and other initiatives for the Digital Garage Group. VeriTrans supports cashless payments and business growth through payment solutions that can be used by business operators in a wide range of industries–such as logistics, services, manufacturing, government ministries, and local governments–in diverse channels including e-commerce, physical stores, and omnichannel developments. As a leader in the payment services industry, which has now grown into a basic social infrastructure, VeriTrans will work with DG Group company ECONTEXT to offer advice to government institutions and the credit card industry, along with speedy service that meets the needs generated by trends in business and policy. Such efforts will support the expansion of convenient solutions, along with a safe and secure environment, as required by EC businesses and consumers.