Welcome to the PaymentsSource Morning Briefing, delivered daily. The information you need to start your day, including top headlines from PaymentsSource and around the Web:

Samsung's new biometrics can't do payments: Samsung's developers may require more than four years of work before its latest facial recognition technology is ready for mobile payments, according to The Investor, a South Korean publication, citing a source inside Samsung along with other industry experts. The facial recognition technology is planned for Samsung's new Galaxy S8 smartphone. The technology is an easier "next step" for biometrics that allows consumers to generally look at the smartphone instead of positioning their eyes near a specific part of the phone, or moving a finger near a scanner. But the technology is not mature enough for transactions that require a high level of security, such as banking and payments, according to The Investor's sources. It would be another setback for Samsung, which has suffered from a corruption scandal in its executive ranks and a $6 billion hit after discontinuing Samsung Note 7 phones, which had a fire risk. Samsung told The Investor the new facial recognition technology is designed at this point to only unlock the phone and has a lower security level than iris scanners and fingerprint technology, and dismissed the new technology's necessity to secure payments. The Investor also reported Alibaba has demonstrated technology similar to Samsung's next-generation biometrics, but has not deployed it on any handsets.

Bloomberg News

Government operation: Chip cards are designed to not only protect payments, but also leverage the embedded technology to validate ID for everything from parking garages to office buildings. But it would be helpful if the chips were actually real chips. According to Techdirt, the ID cards for some Senate staffers don't have an embedded chip, but a photo of a chip, apparently the result of photoshopping. The technology news site references a letter from Sen. Ron Wyden (D, Ore.) to Sens. Amy Klobuchar (D, Minn.) and Richard Shelby (R, Ala.), two of Sen Wyden's colleagues on the Committee on Rules & Administration. The letter notes that there's only a photo of a chip on ID cards, and mentions the potential danger that would pose, particularly since chip cards are considered part of the government's two-factor authentication program. Sen. Wyden's letter calls for real chips to be placed on Senate ID cards.

Big banks try Swift's blockchain: Swift's attracted a half-dozen large correspondent banks to take part in a trial of distributed ledger technology. Econotimes reports ANZ, BNP Paribas, BNY Mellon, DBS Bank, RBC and Wells Fargo will help determine if blockchain can reconcile cross-border payment databases in real time. About 20 other banks will shortly join the six original banks, and will identify the specifications needed for reconciliation, build the application and perform a proof of concept test over the next few months. The distributed ledger could replace the current model, in which banks monitor funds in overseas accounts through debit and credit updates, and statements at the end of each day, which is costly and not conducive to fast processing. Blockchains are already used to support smaller cross-border payments between consumers and for small-business e-commerce sales.

Nacha's nod to third parties: In an effort to address third-party risk behind digital payments, e-commerce and real-time processing, Nacha has launched a new certification program for third-party senders. Third parties that are "Nacha Certified" will will have demonstrated standards for business oversight, ACH risk and compliance, and sound governance. Telecheck, First Data's check and ACH business, is the first program to pass Nacha's third-party certification program. "Third-party senders are important and valued players in the ACH network, and help businesses and other organizations benefit from originating ACH payments for services," said Janet Estep, Nacha's president and CEO, in a release.

From the Web (powered by Wiser)

Three Surprising New Places You'll Pay In The Future
Forbes • Contributor, Michelle Evans
Technology continues to change commerce. It has opened the door to new ways of engaging with brands and new payment methods. Now, it is introducing consumers to new payment environments, including the fitting room, car and laundry room.

India Mobile Payment Buzz: Potential MobiKwik FreeCharge Merger
Crowdfund Insider • Erin Hobey
According to multiple new sources, MobiKwik and FreeCharge are considering an all-stock deal merger. Post-merger, the platform also anticipates an additional $200 million (nearly Rs 1,300 crore) injection from an unnamed Chinese investor. FreeCharge, part of online marketplace Snapdeal, has reportedly been...

China Leads On Mobile Wallets -- Will Others Follow?
Forbes • Contributor, Tom Groenfeldt
Mobile wallets, which are proving popular in China, are less popular in the U.S. where consumers don't find them more convenient that credit or debit cards.

More from PaymentsSource

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Push payments boost 'faster pay' and consumer choice
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To build real-time payments, The Clearing House first built a partner network
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