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Improving Convenience or Saving Face? An Empirical Analysis of the Use of Facial Recognition Payment Technology in Retail

Jia Gao¹; Ying Rong²; Xin Tian^3,4; Yuliang Yao⁵

¹ Institute of Supply Chain Analytics, Dongbei University of Finance and Economics, Dalian, Liaoning 116025, China; · ² Antai College of Economics and Management, Data-Driven Management Decision-Making Lab, Shanghai Jiao Tong University, Shanghai 200030, China; · ³ School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China; · ⁴ Research Center on Fictitious Economy and Data Science, Chinese Academy of Sciences, Beijing 100190, China · ⁵ College of Business, Lehigh University, Bethlehem, Pennsylvania 18015

Facial recognition payment technology (FR) has the potential to disrupt the offline retailing industry by automating the payment process. However, some firms that adopted FR payment technology have experienced only moderate success, and many customers have expressed frustration using FR payment technology. By utilizing data sets from three retail chains, we find that customers are less likely to use FR payment technology during self-checkouts when more customers are in line behind them, waiting and watching (the social presence effect), and when more preceding customers use the other payment technology (the herding effect). These findings imply that (1) the design of FR technology can be improved to alleviate the social presence effect (such as adding a privacy screen filter or beautify the appearance of the consumer’s image), and (2) monetary incentives may be used to attract more users by leveraging the herding effect.

DOI

10.1287/isre.2023.1205

Volume

35 (1)

Pages

16-27

Language

en

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BibTeX

Sources

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