Daon, an identity services provider, is providing its biometric authentication system to online payments provider Optimal Payments to support high-risk businesses with stringent Know Your Customer requirements.

Optimal Payments will use Daon's IdentityX biometric two-factor authentication technology for its Netbanx secure online payments gateway and Neteller e-wallet account.

Daon offers both fingerprint and retinal scanning technology.  The IdentityX service allows individuals to be re-verified online as part of the payment transaction flow.

Optimal Payments will be speaking with clients about which verification method is most appropriate for them, says Dan Starr, chief marketing officer at Optimal Payments.

Based in the U.K., Optimal Payments started in 1996 and now provides services for clients in more than 200 countries.

Biometrics technology hasn't seen mainstream adoption yet but it is picking up momentum. In June, WorldPay, a London-based payment processor and online gateway provider, reported that of the 2,100 U.K. consumers surveyed, nearly 50% would like to use biometrics for security.

Earlier this year, PayTango Inc. introduced biometric payments on college campuses, hoping to find an audience among tech-savvy students. And after launching biometrics authentication in France, Natural Security SAS is hoping the U.S. will be just as receptive.

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