Jack Ma Monday, the CEO of Alibaba Group Holding Ltd (NYSE:BABA) unveiled company’s new ‘Pay with a Selfie’ technology. It is facial recognition tool that will be used with Alipay’s mobile payments service. The company expects to strengthen its position in the growing mobile-payments business. Also, it highlights that facial recognition is better than remembering password.
Alibaba’s new technology validates mobile payments by comparing the stored profile photo with the user’s photo taken at the time of purchase. In the case of Ma, he used to purchase a commemorative stamp from the Hanover trade fair through Alibaba’s e-commerce site. He stated that in six days the stamp will reach the office of Hanover Mayor.
The facial recognition technology has been designed by Ant Financial unit. It is the same unit which operates Alipay. The company was spun out of Alibaba before the IPO last year. Ma has hinted that that he can opt for a separate listing of Alipay. Smile to Pay will be introduced in China first and then will be launched in other nations. The domestic market will act as a testing platform for new technology. Alipay already looks after more than 80 million transactions per day from its registered users.
In the past, Alibaba Group Holding Ltd (NYSE:BABA) was forced to deal with the allegation of failing to regulate bribery and fake transactions, among other illegal activities on its platforms. However, no one ever analyzed the reasons behind the problem. With more than 6 million vendors, it appears impossible for a company’s products to be seen on Taobao, Alibaba’s biggest online shopping site. A vendor will only benefit when more customers shop for its products. Thus, the vendors opted for an illegal way that is known as brushing. In short, the company became a victim of brushing that permits vendors to get customers.