Why Did Amazon End Palm Pay?

Adding some doubt to the future of biometrics payments, Amazon announced it’s ending Amazon One, its palm-scanning payment device available at many Whole Foods, its other retail banners, and sports arenas.

The support page for the service and e-mails sent to customers state that the service is set to be discontinued at retail businesses on June 3.

“In response to limited customer adoption, we’re discontinuing Amazon One, our authentication service for facility access and payment,” Amazon said in a media statement. “All customer data associated with Amazon One will be securely deleted after the service ends.”

Amazon One was first introduced in 2020 at a few Seattle Amazon Go locations with a promise to offer a “fast, convenient, contactless way for people to use their palm to make everyday activities like paying at a store, presenting a loyalty card, entering a location like a stadium, or badging into work more effortless.”

The technology drew backlash from privacy advocates as well as lawmakers. In 2021, Sens. Amy Klobuchar, Bill Cassidy, and Jon Ossoff sent a letter to Amazon CEO Andy Jassy expressing concern about the biometric data Amazon is amassing on customers -- and how it might be used for advertising and tracking.

Biometric Payments Continue To Increase in Adoption, Though Holdouts Remain

Biometric recognition by all indications is being welcomed at airports by travelers seeking to speed through terminals and onto flights.

A survey of 10,000 travelers across 200 countries from The International Air Transport Association (IATA) taken last year found the number of travelers who use biometric processes during their journey had increased to 50% from 46% in 2024. Of the respondents, 74% would be willing to share their biometric information if it means they can skip showing a passport or boarding pass at checkpoints like check-in, security, border control, and boarding.

Privacy still remained a concern, as 42% of passengers are currently unwilling to share their biometric info unless they’re more assured their data privacy is assured.

Beyond palm vein, payments could be tied to fingerprint, facial, and iris biometrics. Payment via facial recognition is gaining some attention as major financial firms like JPMorgan and Mastercard, as well as startups like South Korea’s Toss, are expanding “face pay,” allowing users to authenticate payments at stores and venues by simply looking at a terminal.

The biometric pay method gaining the most traction is Apple Pay, though other mobile pay options enable individuals to use fingerprint or face scan to unlock their device in lieu of a PIN code. A survey of 1,000 U.S. adults by embedded payments provider NMI last year found 64% of respondents embrace biometric authentication like face ID or fingerprints. Among age groups, 64% of Gen Zers and millennials say they’ll take their business elsewhere if in-app payments aren’t an option. Among boomers, 43% are uncomfortable using biometric authentication, while 40% embrace it for its speed, security, and convenience.