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Writer's pictureYasuhiro Takayama

Transforming Japan with Biometric Authentication: Opportunities for Innovation



Japan is gradually implementing biometric authentication across industries, creating a promising frontier for technological innovation. This transformation is primarily driven by the need for contactless, efficient, and secure systems amidst evolving digital landscapes. Initial applications are focusing on controlled environments such as company premises, which could serve as a launching pad for broader implementation.



A Controlled Testing Ground: Corporate Applications


Japanese companies are introducing biometric systems within the workplace. For example, NEC has rolled out a "digital employee ID" that uses facial recognition to manage office access, sales, cafeteria payments, and locker use for its 20,000 employees. This system minimizes the need for physical ID cards and enhances security by weaving in advanced biometric and decentralized identification technologies. NEC plans to extend this technology to its subsidiaries and potentially other sectors such as public services and transportation.



Retail Experimentation: Enhancing Customer Experience


In retail, companies like Tobu Store are testing biometric solutions such as finger vein recognition at self-checkout kiosks. By allowing customers to pay and confirm age with a simple scan, these solutions aim to speed up checkouts and enhance the shopping experience. Initial trials have shown promise, with thousands of customers registering their biometric data to quicken their shopping trips.



Broader Implications: Expanding Biometric Use


Tobu and Hitachi’s collaboration illustrates the potential for biometric authentication to extend beyond mere entry and payment verification. Tobu aims to offer a broad digital identity platform, potentially transforming into a common infrastructure that could integrate varied services like hotel check-ins and sports club memberships across Japan. This ambition aligns with Hitachi’s vision to foster widespread adoption, facilitating seamless transitions between different service providers and enhancing user convenience across daily activities.



The Technological Edge: Overcoming Pandemic Barriers


With the pandemic necessitating contactless solutions, new types of biometric systems capable of functioning accurately even with mask-wearing users are being explored. This innovation opens doors for application in public spaces, supermarkets, and more, pushing Japan's tech landscapes to adapt swiftly to global digitization demands.



Opportunities for Foreign Companies


This wave of digital transformation in Japan signifies an expanding market for foreign tech firms specializing in biometric and IT integration services. As Japanese companies pivot towards these technologies, there’s great potential for international collaboration in developing secure, efficient systems tailor-made for this evolving landscape. Solutions that address local regulatory requirements and cultural nuances are particularly poised to succeed.


The key is corporations. Japan is very careful with risks relating to the lack of control over legal purchases of alcohol and cigarettes for example, and with the aging population, many of the large retail companies will be careful not to alienate their long-time customers. On the other hand, many companies in Japan have traditionally been quite controlling when it comes to how things are managed inside the company, and they are quick to make change if it is restricted to their employees, as opposed to impacting their customers as well. Facial recognition for authentication is just a start of various digitalization that will do away with various processes or accessories that companies currently provide.



Are You Ready to Enter the Japanese Market?


Seize the opportunity to partner with Japan in this groundbreaking shift towards biometric systems. Foreign companies with advanced biometric solutions can capitalize on this move by entering the Japanese market now.


Discover how your business can thrive in Japan's expanding tech environment. Visit Brandancor Japan to learn about strategic market entry and growth opportunities tailored to your business needs.

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