Could biometric payments eventually replace traditional self-checkout?

Self-checkout has become a staple of the shopping experience, but since it was introduced to the public in 1986, some have wondered whether it’s accomplishing what it set out to do.

Earlier this year, a study found that self-checkout has become the predominant checkout format, with 53% more shoppers using it over a five-year span and a 17% increase from 2020 to 2022, according to VideoMining.

• Grocers have embraced the technology—there was a 162% bump in dollars per 100 store visitors sold from self-checkout merchandising in 2022 compared to 2020.
• And in 2022, 70% of shoppers said they didn’t have to wait in a line at all, a jump from 19% who said the same in 2017.

But as self-checkout, in its traditional form, has expanded in recent years, biometric payments such as Amazon palm payment technology are also starting to spread.

Hands out: In July, Amazon announced that Amazon One, its palm recognition service for identification, payment, and loyalty membership would be in more than 500 Whole Foods Market locations in the United States by the end of the year. This technology allows for customers to bypass even pulling out their phone or wallet but rather scan their hand over the Amazon One device and simply walk out of the store.

• Earlier this year, Starbucks started its trial of Amazon One technology in some of its Seattle-area locations to admittedly mixed results.
• Edmond’s Washington, where the average is about 45 years old, is where Starbucks tested the technology, according to Forbes; as Forbes similarly pointed out, older populations (those above age 55) are the most concerned (48%) with the security risks around mobile payments as opposed to cash or debits cards, according to a CivicScience survey conducted earlier this year.

On the other hand, young shoppers are much more open to new payment methods: a third of Gen Z shoppers said self-checkout technology was a “must-have” component of the modern shopping experience, compared to just 16% of Gen X shoppers saying the same thing, according to a survey from Creative Realities.

“Younger shoppers are compelled more by convenience and autonomy, whereas their older counterparts still place a high value on various contextual elements, things like pleasant human interactions with knowledgeable employees and well-designed store layouts,” Beth Warren, SVP of marketing at Creative Realities, said in the Creative Realities report.

Tides turning? Meanwhile, in the service industry, consumers already dealing with tipping fatigue, started to notice tipping options at self-checkout kiosks, particularly at airports.

• Retail Brew surveyed our readers earlier this year, asking if they would leave a tip at a self-checkout kiosk, and more than 99% gave a resounding no.
• Also, a 2021 survey from Raydiant found that two-thirds (67%) of customers have experienced some sort of failure when using self-checkout kiosks.

Meanwhile, Amazon One technology is also found at airport retailers, convenience stores, and sports stadiums like Lumen Field in Seattle.

“We saw a dramatic increase in throughput in one of our tightest concourses, with less congestion and steadier flow at full capacity,” Zach Hensley, VP of operations for the Seattle Seahawks and general manager of Lumen Field, told Amazon. “Just Walk Out is a seamless technology that lets fans get their food and drinks during a timeout as quickly as possible, so they can get back to their seats.”

Zoom out: It’s not all said and done when it comes to biometric payments taking over for traditional self-checkout at retailers. A majority (73%) of Americans are still not comfortable with Amazon One, just a 5% decrease from 2019, according to Insider Intelligence.

• Most people’s concerns when it comes to this technology are related to privacy, according to Insider Intelligence.