Alipay Launches Contactless Palm Print Payment System in China

Alipay, a subsidiary of Alibaba, has unveiled the PL1 palm print payment device, a next-generation biometric payment terminal that enables users to complete transactions using only their palm. By eliminating the need for cards, mobile phones, or PIN codes, the PL1 offers a fast, contactless solution for retail payments and beyond.

The PL1 device employs dual-layer biometric authentication, scanning both surface palm print ridges and subcutaneous vein patterns to verify identity. This layered approach enhances security by leveraging biological characteristics that are highly individual and difficult to replicate. According to Alipay, the system achieves a false acceptance rate of less than one in a million, offering stronger protection against spoofing than traditional biometrics such as fingerprints or facial recognition.

Users register by simply holding their hand over the sensor and scanning a QR code to link the device with their Alipay wallet. Once enrolled, transactions can be completed in approximately two seconds with no physical contact, making the system well-suited to high-traffic environments. Early pilot programs in Hangzhou have demonstrated faster queue throughput and improved hygiene compared to card-based terminals.

All biometric templates are encrypted, and raw palm data is stored locally in compliance with China’s data protection regulations. Alipay emphasizes that biometric data does not leave the country and is not accessible to third parties, aligning with national mandates on data localization. However, the system’s reliance on immutable biometric identifiers raises broader concerns, as such data cannot be changed if compromised—unlike passwords or tokens.

The launch of the PL1 comes amid growing global adoption of biometric payments. Market analysts forecast over 3 billion biometric payment users by 2026, with transaction volumes exceeding $5 trillion. Major financial institutions are joining the trend: J.P. Morgan is preparing for a national rollout of palm-based payments in 2026, and Amazon has already deployed palm authentication in retail and healthcare settings across the U.S.

Alipay sees broader applications for the PL1 beyond payments. Future use cases include public transportation fare systems, secure facility access, and hospital check-ins, aligning with trends in biometric identity usage across sectors. However, international expansion may face hurdles due to diverging global privacy laws—particularly in regions with strict biometric data regulations such as the EU and parts of North America.

The PL1 device currently costs more than conventional NFC contactless readers, largely due to its specialized sensor array and biometric processing capabilities. Alipay anticipates that costs will decline over the next two years through scaled manufacturing and partnerships with financial institutions. The company is also engaged in ongoing discussions with regulatory bodies regarding age restrictions, audit trails, and consumer data rights, aiming to support responsible deployment at scale.

Despite the challenges of introducing dedicated hardware into merchant environments, the high speed, hygiene, and spoof resistance of palm-based authentication may appeal to operators seeking to modernize their checkout experiences. Compared to facial or fingerprint recognition, palm vein biometrics are less susceptible to environmental variation, are not visible to the naked eye, and have reportedly shown high user acceptance in pilot programs in Asia and the Middle East.

Sources: Techeblog, Yanko Design

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April 17, 2025 – by the ID Tech Editorial Team