Pay By Touch Launches Biometric Check Cashing Service for FIs

The Pay By Touch(R) Paycheck Secure service lets people cash checks using a simple finger scan to authenticate their identity. Already used by more than three million consumers in 1,700 retail locations nationwide, Paycheck Secure is a popular and widely adopted biometric check cashing service.

The Paycheck Secure service has been proven to drive an increase in check cashing volume in retail settings, while decreasing write-offs by 75 percent(1) as compared to other check management solutions. It has the power to help financial institutions streamline branch handling of 'on us' and 'non- bank' checks, reduce the risk of fraud and support regulatory compliance through OFAC screening and SAR and CTR reporting.

The Paycheck Secure service can also help banks and credit unions reach the more than 45 million 'underbanked' consumers who are presently underserved by financial institutions. According to the Center for Financial Services Information (CFSI), this group represents 40 million households and spends $10.9 billion per year on 324 million alternative financial transactions. A 2006 study by BearingPoint and Visa reveals that the underbanked generate $1.1 trillion in income.

"There is no better way to protect the security and privacy of your customer than with our Paycheck Secure Service. Through biometrics, we can help banks to more securely address large and growing opportunities. For instance, the historically underbanked Hispanic community will drive 50 percent of the growth in retail banking in the decade to come," said John Rogers, founder, Chairman, and CEO of Pay By Touch. "The Paycheck Secure service can help banks protect themselves while building a bridge to 45 million underbanked consumers."

The Paycheck Secure service is easy to use and easy to implement. Early adopter Zions First National Bank has rolled it out across 12 branch locations in Utah and Idaho. "The service is proving popular with customers because it makes the process of cashing checks quick and hassle-free," said Rob Brough, Senior Vice President of Marketing and Communications of Zions Bank. "Customers gain additional peace of mind knowing that no one else can fraudulently cash their paychecks."

"Banks and credit unions have proven far less successful than alternative financial services providers at using check cashing to build deeper relationships with the unbanked and underbanked," said Gwenn Bezard, Research Director with Aite Group. "Biometric check cashing represents a unique opportunity for banks and credit unions to turn around a commoditized product and differentiate on speed, quality and security of service to address those segments. It also offers them an efficient and secure way to expand the service to non-customers by mitigating traffic issues."

The one-time signup for the Paycheck Secure service is quick and easy to complete. To enroll new customers, banks digitally scan the consumer's I.D., take an electronic photograph and capture two fingerprints, creating a unique customer profile for that individual. At subsequent visits to the bank, the customer need only place his/her finger on the scanner to safely and securely cash payroll and government checks.