A SoftBank-owned company, Japan Computer Vision Corp (JCV), which is thriving for its face-recognition technology, faces risks due to the face-off between USA and China, as the facial-scanning system, it offers to U.S. heavyweights Mastercard Inc and Visa Inc uses technology from SenseTime Group, a Chinese firm blacklisted by the United States over human rights concerns.
JCV, owned by SoftBank Group Corp’s wireless unit, has made deals on payments in recent months, a much-needed breakthrough for founder Masayoshi Son’s dream of running a new business through partnerships between its tech investments.
Additionally, if JCV is successful it could become a standout example of SoftBank creating synergies with portfolio companies, which also is a key part of Son’s sales pitch to the tech industry. However, it would not be as easy as it sounds, considering the system is a lot similar to Mastercard Inc and Visa Inc technology from SenseTime Group, a Chinese firm which has been blacklisted by the United States for human rights concerns.
As Son tries to take a stand as a neutral player even amongst the tensions between the two key markets, he said that SoftBank is taking a cautious approach towards China due to a regulatory crackdown there which has roiled its portfolio.
JCV said it keeps SenseTime and the credit card companies at arm's length - the Chinese firm is a technology partner with no access to Mastercard's and Visa's systems or data.
Mastercard said all of its biometric-checkout programme partners must adhere to European Union standards of data protection. Visa said it is working to define the use of biometrics in payments and believes such technology can help ensure a secure system.
JCV's rapid expansion also faces privacy concerns from regulators and consumers as facial-recognition technology goes mainstream. SenseTime's shares plunged 50% last week with the end of a lock-up period after its initial public offering.
SenseTime told Reuters it aims to strengthen the partnership with JCV, which it believes will benefit businesses, and that the company has established an ethics council to ensure standards.
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