(Tiểu luận) glance using face recognition in payment at supermarkets, convenience stores

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF BANKING – FINANCE    GROUP PROJECT GLANCE - USING FACE RECOGNITION IN PAYMENT AT SUPERMARKETS, CONVENIENCE STORES Class: Fintech 61 Course: Fintech Lecturer: PhD Luong Thai Bao PhD Pham Minh Hoan Hanoi, 26 August 2023 GROUP 09 Student Name Student ID Nguyễn Sơn Dương 11191266 Vũ Thị Cẩm Linh 11193098 Hoàng Tiến Nam 11196197 Lê Thu Ngân 11193675 Trần Thị Thương 11195019 TABLE OF CONTENTS CASHLESS PAYMENT: 1.1 For the economy: 1.2 For the customers: 2 ARE SUPERMARKETS, CONVENIENCE STORES AND CUSTOMERS WILLING TO CHANGE WITH NEW PAYMENT METHODS? 2.1 Winmart, Winmart+ .3 2.2 AEON .4 2.3 Saigon Co.op 2.4 Co.opmart .6 2.5 Homefarm .6 2.6 BigC .7 GLANCE AND TECHNICAL FLOWCHART OF GLANCE: 10 CORE TECHNOLOGY IN GLANCE: 11 4.1 Core technology in AI 11 4.2 Core technology to make apps – FrontEnd 13 4.3 Core technology in BackEnd 14 4.3.1 Advantages of Django 14 4.3.2 Cons of Django 15 COMPARE EXISTING PAYMENT METHODS AT SUPERMARKETS AND CONVENIENCE STORES WITH GLANCE - PAY WITH FACE RECOGNITION: 16 BUSINESS MODEL CANVAS: 19 ESTIMATED REVENUE STREAM AND COST STRUCTURE: .21 7.1 Revenue stream 21 7.2 Cost structure 21 BARRIERS TO GLANCE: 22 MARKETING STRATEGY: 23 REFERENCES: .24 CASHLESS PAYMENT: The COVID-19 pandemic has spurred financial inclusion – driving a large increase in digital payments amid the global expansion of formal financial services This expansion created new economic opportunities, narrowing the gender gap in account ownership, and building resilience at the household level to better manage financial shocks, according to the Global Findex 2021 database As of 2021, 76% of adults globally now have an account at a bank, other financial institution, or with a mobile money provider, up from 68% in 2017 and 51% in 2011 Importantly, growth in account ownership was evenly distributed across many more countries While in previous Findex surveys over the last decade much of the growth was concentrated in India and China, this year’s survey found that the percentage of account ownership increased by double digits in 34 countries since 2017 The pandemic has also led to an increased use of digital payments In low and middleincome economies (excluding China), over 40% of adults who made merchant in-store or online payments using a card, phone, or the internet did so for the first time since the start of the pandemic The same was true for more than a third of adults in all low- and middleincome economies who paid a utility bill directly from a formal account In India, more than 80 million adults made their first digital merchant payment after the start of the pandemic, while in China over 100 million adults did In Vietnam, two-thirds of adults worldwide now make or receive a digital payment, with the share in developing economies grew from 35% in 2014 to 57% in 2021 In developing economies, 71% have an account at a bank, other financial institution, or with a mobile money provider, up from 63% in 2017 and 42% in 2011 Mobile money accounts drove a huge increase in financial inclusion in Sub-Saharan Africa Payments has some notable results as the percentage of adults with a checking account is close to 66% The whole country has had about 3.4 million accounts and 1.3 million new bank cards opened online, remotely via electronic method (eKYC) Out of a total of 1.1 million customers registered to use Mobile Money service, nearly 660,000 customers are rural, mountainous, remote, border and island customers As of April, non-cash payment transactions increased by 69.7% in volume, 27.5% in value; Transactions via the Internet also increased by 48.39% and 32.76%, respectively; by phone increased by 97.65% and 86.68%, respectively; through QR codes increased by 56.52% and 111.62% respectively over the same period in 2021 The total number of activated ewallets increased by 10.37% compared to the end of 2021 According to Deputy General Director of Vietnam National Payment Joint Stock Company (Napas) Nguyen Quang Minh, Napas has now completed the connection of payment infrastructure to 48 localities, 15 units are ministries, departments and agencies providing payment public service provider to provide online payment services for five service groups on the National Public Service Portal Non-cash payment methods implemented by Napas include payment via chip cards issued by banks, payment via bank account number and payment method with VietQR code In the coming time, Napas will continue to expand payment for many services such as tuition and hospital fees on the National Public Service Portal Digital transformation is a major policy that the Government and ministries and branches are trying to implement After a period of being affected by the Covid-19 epidemic, people's payment habits are gradually making great changes, becoming an important lever to accelerate non-cash payment activities, towards a society non-cash association In fact, cashless payment has become an inevitable trend because it brings many obvious benefits to both people and the economy Dr Nguyen Tri Hieu pointed out benefits of cashless payment for both the economy and consumers 1.1 For the economy: The first step is to reduce many costs for the financial industry Secondly, non-cash payments also help combat the loss of tax revenue to the State from underground or non-transparent transactions; reduce the risk of money laundering, in other words, control and detect illegal payments Thirdly, non-cash payments reduce the proportion of payment entities that store money with them, contributing to strengthening the demand for capital for society 1.2 For the customers: Non-cash payments are beneficial when shopping such as saving time and effort of payers and collectors, reducing waiting time for payment Finally, non-cash payments through apps or cards are also a way to ensure a safer transaction process, fast payment speeds, and easy and flexible authentication ARE SUPERMARKETS, CONVENIENCE STORES AND CUSTOMERS WILLING TO CHANGE WITH NEW PAYMENT METHODS? Currently, supermarkets and convenience stores are willing to change payment methods to bring convenience and safety to customers: Figure 01: Number of supermarkets distributed in Vietnam (Source: Q&Me Vietnam Market Research: Vietnam Retail Store Statistic 2021) 2.1 Winmart, Winmart+ To contribute to changing the habit of using cash and providing a convenient payment intermediary, an e-wallet on the VinID application of Vingroup was born Since March 15, 2019, VinMart launched the Scan & Go feature that is integrated on the VinID application so that users can comfortably shop at WinMart's supermarkets quickly and conveniently with just a phone instead of having to queue and queue for shopping According to Mai Lan Van, Marketing Director of VinID Joint Stock Company, since the outbreak of the Covid-19 epidemic, the Scan & Go feature (the feature of scanning Document continues below Discover more from: Tài cơng TCC1 Đại học Kinh tế… 415 documents Go to course Cau hoi on thi Tai 15 chinh cong Tài cơng 100% (5) Tài-chính-cơng-1 128 (2021) Tài cơng 100% (3) Tổng hợp câu hỏi 17 sai Tài cơng 100% (2) NỘI DUNG ƠN TẬP10 TCC-CLC Tài cơng 100% (2) CÁC DẠNG BÀI TẬP TỰ LUẬN THI MÔN… Tài cơng 100% (2) Quản trị q trình purchase codes at Winmart and Winmart+ supermarkets) of thekinh VinIDdoanh application has recorded receiving orders increased 15 times compared to the previous peak, Tài the rate of 100% (2) online shopping also increased times compared to normal công 2.2 AEON At AEON Vietnam, the retailer pursues the mission of elevating the daily lifestyle of the community where it is present, through continuous improvements and innovations to enhance the customer experience Promoting digital transformation and automation is identified as one of the key policies in the long-term strategy of AEON Group Accordingly, AEON Vietnam always improves and introduces new solutions for customers to shop more conveniently and get closer to modern shopping trends in the world Mr Luu Hong Phuoc - Financial Planning Director of AEON Vietnam - shared that accelerating digital transformation and promoting non-cash payments have been part of AEON Vietnam's long-term development strategy, and also consistent with the general trend Over the years, the company has deployed a variety of payment methods and applied technology solutions to meet the needs of customers in the current context In addition, AEON Vietnam also continuously cooperates with partners to deploy many incentive programs, encouraging customers to use cashless shopping methods when shopping directly at supermarkets or buying groceries online goods In order to meet the new shopping trends of customers, in recent years, AEON Vietnam has continuously implemented digital transformation and automation activities in both operations and business AEON Vietnam hopes to contribute to making non-cash payments a habit of the people under the Project of developing non-cash payments in Vietnam in the period of 2021 - 2025, bringing a new and convenient experience benefits and improve the daily life style of consumers in Vietnam Figure 02: Vietnam introduces to customers about digital utilities that businesses have been implementing at centers (Source: tuoitrethudo.com.vn) 2.3 Saigon Co.op At the end of 2019, Saigon Co.op and MoMo e-wallet officially signed a strategic cooperation agreement to promote digitization on supermarket chains of Co.opmart, Co.opXtra, Co.op Food,… and becoming the first retailer in Vietnam to apply digital technology on a large scale Accordingly, the official MoMo wallet is the only e-wallet accepted at payment counters throughout the system of Saigon Co.op This will provide customers of Saigon Co.op and MoMo e-wallets with convenient and safe modern shopping experiences in line with trends By increasing the application of electronic payment methods in supermarkets distributed throughout Vietnam, Saigon Co.op and MoMo e-wallet make an important contribution to reducing the use of cash and helping transactions The daily routine of tens of millions of Vietnamese consumers is fast, safe and convenient, as well as practically reducing the load of counting, storing and transporting cash Mr Nguyen Anh Duc, deputy general director of Saigon Co.op, said the retailer wants to apply technology to enhance the service experience for customers, especially in the payment stage 2.4 Co.opmart Recently, Co.opmart supermarkets have applied non-cash payment At the same time, promote propaganda and encourage consumers to actively respond and participate in noncash payment in shopping at supermarkets From there, promoting digital transformation and information technology application in business activities in general and non-cash payments in particular To respond to the "National Digital Transformation Day 10/10" 2022, with the theme "Digital transformation solves the problems of society for a better life for the people", Co.opmart Supermarkets continue to deploy non-cash payment services and utilities when customers shop at supermarkets Deputy Director of Co.opmart Ca Mau Supermarket Truong Nguyen Anh Huy said: “Co.opmart Ca Mau has been using many non-cash payment methods, actively supporting and guiding customers payment when buying goods via QR Code, payment via POS, online payment via MoMo e-wallet, Visa touch, etc Through the above payment methods, customers who not carry cash can still shop and convenient payment via card and electronic payment without paying any additional costs In the coming time, Co.opmart supermarkets will continue to promote propaganda and encourage customers to use noncash payment methods, contributing to changing customers' payment habits 2.5 Homefarm To catch up with the trend and create impressive growth, Mr Tran Van Truong, General Director of Homefarm said that in addition to focusing on product quality, Homefarm also focuses on in-store services, in which, the Enhancing customer experience and convenience such as free on-site food preparation, packaging of diverse combos with detailed instructions for consumers to providing convenient payment solutions are all planned, plan closely banking applications or ATM card This method is more convenient, fast and secure If there is a more convenient, fast and secure payment method, I will try it." Ms Kha Phuong Trang (in Soc Trang) said: "I find it very convenient to use a card when shopping for a lot of things like this, I don't need to carry a lot of cash, I just need to carry a bank card to pay payments up to several tens of millions of dong" Ms Minh Ngoc (in Ho Chi Minh City) said: “Because the company pays salaries through Vietcombank, this bank connects with any wallet that has a promotion, I download the app and use it Currently, every time I go to Vinmart supermarket, Co.opmart or convenience stores, I use the QR Code app of electronic wallets integrated with banks to pay for goods, which is convenient because I don't have to carry carry a lot of cash in your pocket, while not having to touch much in the stressful situation of the epidemic GLANCE AND TECHNICAL FLOWCHART OF GLANCE: GLANCE meaning A quick glance can make a payment Figure 05: Glance’s technical flowchart (Source: Author) 10 CORE TECHNOLOGY IN GLANCE: 4.1 Core technology in AI Face recognition is a biometric approach that employs automated methods to verify or recognize the identity of a living person based on his/her physiological characteristics Face recognition has the benefit of being a passive, non intrusive system to verify personal identity in a “natural” and friendly way In addition, the problem of machine recognition of human faces continues to attract researchers from disciplines such as image processing, pattern recognition, neural networks, computer vision, computer graphics, and psychology Areas Specific applications Video game, virtual reality, training programs Entertainment Human-robot-interaction,human-computer-interaction Drivers’ licenses, entitlement programs Smart cards Immigration, national ID, passports, voter registration Welfare fraud TV Parental control, personal device logon, desktop logon Application security, database security, file encryption Information security Intranet security, internet access, medical records Secure trading terminals Advanced video surveillance, CCTV control Law enforcement and surveillance Portal control, postevent analysis Shoplifting, suspect tracking and investigation Figure 06: Specific applications A general statement of the problem of machine recognition of faces can be formulated as follows: given still or video images of a scene, identify or verify one or more persons in the scene using a stored database of faces The solution to the problem involves segmentation of faces (face detection) from cluttered scenes, feature extraction from the face regions, recognition, or verification (Figure 1) In identification problems, the input to 11 the system is an unknown face, and the system reports back the determined identity from a database of known individuals, whereas in verification problems, the system needs to confirm or reject the claimed identity of the input face Figure 07: Configuration of a generic face recognition system Face recognition starts with the detection of face patterns in sometimes cluttered scenes, proceeds by normalizing the face images to account for geometrical and illumination changes, possibly using information about the location and appearance of face landmarks, identifies the faces using appropriate classification algorithms, and post processes the results using model-based schemes and logistic feedback 12 All face recognition algorithms are consistent of two major parts: (1) face detection and normalization and (2) face identification Algorithms that consist of both parts are referred to as fully automatic algorithms and those that consist of only the second part are called partially automatic algorithms Partially automatic algorithms are given a facial image and the coordinates of the center of the eyes Fully automatic algorithms are only given facial images Figure 08: Face recognition (Source: Freepik) 4.2 Core technology to make apps – FrontEnd React Native is an open-source JavaScript framework, designed for building apps on multiple platforms like iOS, Android, and also web applications, utilizing the very same code base It is based on React, and it brings all its glory to mobile app development React Native uses JavaScript to compile the app’s user interface, but using native-OS views For more complex features, it allows code implementation in OS-native languages (Swift and Objective-C for iOS, and Java and Kotlin for Android) 13 Figure 09: (Source: dev.to) 4.3 Core technology in BackEnd Django is an advanced Web framework written in Python that makes use of the model view controller (MVC) architectural pattern Django was created in a fast-moving newsroom environment, and its key objective is to ease the development of complicated, databasedriven websites This Web framework was initially developed for The World Company for managing some of their news-oriented sites In July 2005, it was publicly released under a BSD license Django is available as an open-source Web framework, and it uses Python extensively to create files, settings and data models It is designed to address two main challenges: the rigorous requirements of highly experienced Web developers and the intense deadlines of a newsroom Django concentrates more on automating wherever possible and sticking to the "don't repeat yourself" principle 4.3.1 Advantages of Django Django's top advantage is its ability to design, create websites and applications surprisingly quickly In addition, below Bizfly lists the pluses that make this framework stand out and are widely used by programmers 14 • Good security: Working with Django, programmers have almost no space to make any security mistakes It helps developers avoid all common errors such as clicks, cross-page scripts, SQL injections, request tampering, As a result, the product created by this framework has extremely good security • Expand as much as you like: Django has an extensive feature available to help programmers manage traffic, suitable for pages with large traffic • Easy to use: Django is created by Python programming language and MVC model, so it is easy to apply in projects Multilingual and Multi-Site supported • Easy to learn: There are many materials that support learning Django, including free online materials and printed books The Django user community is now thriving, newbies can seek help on facebook pages, forums, blogs, 4.3.2 Cons of Django Besides the above advantages, Django also has some disadvantages that you need to consider before using them The following are specific: • There may be some problems when developing small-scale applications/ websites • Relatively difficult routing • Do not issue warnings when errors appear in the template Figure 10: (Source: hackersandslackers.com0 15 COMPARE EXISTING PAYMENT METHODS AT SUPERMARKETS AND CONVENIENCE STORES WITH GLANCE - PAY WITH FACE RECOGNITION: Fast Cash Card (POS) Mobile banking Digital wallet Convenient - Average about Extra vigilant minute/payment bookkeeping is transaction required Cash, - It takes time to especially large return money and amounts of cash, time to get small can be hard to change keep track of - It is not possible to carry too much cash at the same time so customers not have enough cash - Average about - Both credit and 30s/payment debit cards transaction require processing fees in order to finally receive your payment - Average about - Require customers minute/payment to have internet transaction connection - Limitations on using technology ability of some sections of customers - Average about - Done easily and minute simply on smart electronic devices 16 Secure - Cash is counterfeit - Storing cash at your place of business or home, or transporting it to the bank, can be dangerous - Cash is easier for employees to steal or misplace - - easy to Limit the worry of theft and loss when keeping cash Card errors/ payment errors (need to contact bank to resolve) - Limit the worry of theft and loss when keeping cash - Limit the worry of theft and loss when keeping cash Fast 25s/payment transaction - - Average about 40s/payment transaction - QR code - - Convenient with internet connection Better financial management because it's easier to capture account balance fluctuations - Secure The level of information security is not high: The massive introduction of many e-wallets makes competition high and many applications still not really guarantee the level of security You may lose your account if you access untrusted links You can make - You will not have to easy payments carry cash or cards, easily on your helping you to reduce the mobile phone with worry of losing money a light touch and cards without much - You may lose your knowledge of account if you access tech untrusted links You need to own a smartphone to perform QR code scanning Currently, only 12 banks support online payment by QR code, so this method is not widely available Requires a strong wifi connection May require customers to input credit or debit card information more 17 Fast - - Average about 10s/payment transaction - Convenient than once since information is not automatically stored Only applicable to stores that deploy payment via QR code No phone, no card and no money For the elderly who not need to operate on the phone, just have a MoMo account GLANCE Figure 11: Comparisons 18 Secure Limit the worry of theft and loss when keeping cash, card, phone This is considered one of the payment methods with high security and avoiding fraud, because each customer is tied to a unique biometric identification data, the face, and the transaction steps are encrypted and protected according to international data security standards (Amazon Web Services) BUSINESS MODEL CANVAS: This study identifies the relationship between financial development and economic growth in Vietnam and adds a new research idea in determining the relationship between finance Key Partners Key Activities - Investor - Banks - Technology infrastructure Amazon AWS - Governing bodies - App research and development, app improvement Sales and marketing - Data center construction Data analysis Value propositions Customer Customer Relationships Segment - Save payment time - Save costs on hiring staff for supermarkets and stores - Convenient when paying - No card, no phone and no cash - Create a new customer experience Secure payments Online customers care via hotline, email - Direct care services + At headquarters (mostly for stores when we need to sign contracts) + Installation service and warranty of necessary equipment Key Resources Distribution channels Front-end development team Market Research and - All Glance app devices - Word of mouth 19 Convenience stores, supermarkets, shopping centers Development Team Online advertising Offline advertising Social media Cost Structure Revenue Stream - Data Center Costs + Infrastructure Licensing - AWS - Marketing and sales - Research and development - Management and administration – General/Administrator On Cloud service Figure 12: Business model Canvas 20 ESTIMATED REVENUE STREAM AND COST STRUCTURE: 7.1 Revenue stream • First months: Free trial • After months: o Revenue from software sales: 105 million VND (installation, free maintenance for the first years) From the 3rd year, there is an additional cost of re-signing of 15 million VND/ month o Hardware sales revenue (face recognition camera): million / counter o How fees are collected: Transaction fee revenue model: The numbers of requests Price per request - 10,000 requests 650 VND 10,000 - 20,000 requests 600 VND 20,000 - 50,000 requests 575 VND More than 50,000 requests 500 VND Figure 13: Pricing chart 7.2 Cost structure • Fixed costs and R&D cost: 500 million VND o Marketing cost: 30 million / month o Operating cost (team Dev): 50 million / month o General operating management cost: 10 million / month o CPU Server rental cost: million / month • Fluctuating costs o Momo API Rental Cost: 250 VND/request 21 BARRIERS TO GLANCE: Momo is currently cooperating with 18 supermarket chains: Sạch Food, Sói Biển, Sakuko, Genshai, Marumart, Co.opXtra, Vissan, LOTTE Mart, Co.opmart, Annam Gourmet, Aeon Citimart, My Market, La Maison, Hi-Foods, Phong Vũ, IGOMall, Co.op Food, AEON, Big C Momo is currently partnering with 10 convenience store chains: Circle K, Co.Op Smile, GS25, Cheers, Ministop, FamilyMart, 7-Eleven, My Mart, B’s mart, Speed L ➢ Momo's coverage for supermarkets and convenience stores is not wide Currently, there are about 31 million users of Momo e-wallet (accounting for 32% of Vietnam's population) Statistical report Visa consumer payment attitudes study 2021, Vietnam is currently using a number of electronic payment means, such as: contactless cards about 7%; contact card payments account for 8%; QR code payments account for 7%; contactless mobile payments account for 5%; online card payments account for 7%; online e-wallet payments account for 15% Non-cash payments aren't really popular yet So face payments are new Propaganda information about face payment methods has not been paid attention and attention Security awareness of customer: Many individuals and organizations have expressed concern that privacy is being compromised by the use of surveillance technology Many people also think that this technology is arbitrary, dangerous and lawless The legal corridor on e-commerce is still not specific: Currently, the law does not have clear regulations on risks in e-payment It is this ambiguity that creates confusion for both the customer and the bank when something goes wrong Enterprises not have enough infrastructure to develop e-commerce: To ensure complete online payment, enterprises need to make large investments in technology infrastructure to ensure security, privacy and security Having human resources knowledgeable about ecommerce Currently, very few businesses meet these conditions, so the development of ecommerce is still difficult 22 MARKETING STRATEGY: Purchase Stage (Bottom of the funnel) • • • • Free consultation Pricing page Live demo Coupon Evaluation Stage (Middle of the funnel) Customer testimonials • Case study • Free sample • Demo video • Solution focused whitepaper • Frequently Asked Questions page • Solution focused webinar • Awareness Stage (Top of the funnel) • • • • • • • • Blog posts Email newsletter Introductory whitepaper Tip sheet Slideshow Resource round up Data visualization Interview Figure 14: Strategy Networking event strategy: • Participate in competitions on entrepreneurship in the field of FinTech • Take advantage of money and resources from investors, investment funds, expand relationships and influence in the Fintech startup community 23