FaceCash, launched by one of the Facebook founders, is a new and exciting way to provide a payment gateway for merchants. For the first time, FaceCash, will be getting a trial period of usage at select Subway Sandwich restaurants in California. In simplest terms, FaceCash is a mobile application for smartphones that operates like a prepaid debit or cash card. The security of the payment process is that the device shows the face of the purchaser on the merchant’s monitor to ensure that that the correct face is using their mobile device.
FaceCash is branch off of ThinkLink, a place where people can enter their personal information, afterwhich a user will be able to transfer funds to their FaceCash account. These personal funds can then be used by retailers offering the FaceCash service which uses a USB that is acknowledged by FaceCash’s iPhone/Android app. FaceCash can be implemented by any retailer that has the usual barcode scanning abilities. You would pay by opening up your mobile device and showing your personal barcode, from which the retailer would scan the code, check against the photograph that will get displayed to them and then complete the transaction.
The biggest advantage of FaceCash is its percentage charge. With most credit payment gateways charging retailers 3%, FaceCash has the great advantage of only charging 1.5%. Credit card payments may never go away, but FaceCash does give retailers a great opportunity to reduce costs and increase profits through the 50% cheaper usage fees.
What do you think – will FaceCash ever catch on? Would you use it?