Key Takeaways
- Alfa-Bank is piloting a contactless payment system that uses facial recognition for transaction authorization.
- The Vzglyad system analyzes biometric signals in real-time and offers PIN code as a fallback.
- This initiative aligns with Russia’s broader exploration of digital currencies, including the digital ruble.
- Recent EU sanctions impact Russian banks, including Alfa-Bank, and financial operations like the Mir payment system.
Alfa Bank Introduces Pilot for Facial Recognition Payments
Alfa-Bank has commenced a pilot program for its innovative contactless payment system, which allows customers to finalize purchases using facial recognition technology. The bank, as confirmed to Moscow-based outlet Gazeta.ru, is initially testing the system with internal staff who use Android devices. This closed trial represents a significant step towards integrating biometric authentication into everyday financial transactions.
Pay with your eyes, or Vzglyad, is currently undergoing testing on Alfa-Bank’s own payment terminals, with plans for a broader rollout across its network. The service aims to eliminate the need for physical cards, smartphones, or direct interaction with payment terminals by utilizing facial biometrics to authorize offline purchases.
💡 The system is designed to analyze biometric signals in real-time, preventing fraudulent transactions using static images or recorded videos. A PIN code confirmation is also available as a security fallback measure.
Facial Scan Payment Authorization Tests Underway
Denis Osin, Alfa-Bank’s director of small and micro businesses, highlighted the project as Russia’s first biometric bioacquiring solution developed in compliance with payment system standards. The Vzglyad initiative was a collaborative effort with Russia’s National Payment Card System (NSPK), with facial identification serving as the primary authentication method.
Osin expressed the bank’s ambition for the new service to enhance everyday transactions, making them more profitable, convenient, and secure, while simultaneously improving the overall customer experience. Alfa-Bank has also indicated its openness to collaborating with other entities within the payments industry to accelerate the adoption of this technology.
✅ The bank assures users that their biometric data is protected through robust internal safeguards and cannot be compromised or stolen in a manner that would jeopardize transactions.
The underlying platform is designed to be interoperable, allowing terminals from other market participants to connect without requiring specialized hardware. Furthermore, cardholders making purchases through Vzglyad will be eligible for cashback incentives.
Broader Digital Currency Developments in Russia
This biometric payment initiative by Alfa-Bank occurs amidst Russia’s ongoing development and testing of its own central bank digital currency (CBDC). As previously reported, the digital ruble, first introduced in 2021 and formalized by legislation in 2023, will remain an optional payment method for salaries.
Anton Tkachev, First Deputy Chairman of the State Duma Committee on Information Policy and Communications, stated that the government has no intention of mandating CBDC payments. He confirmed that individuals will have the freedom to accept or decline digital ruble transfers once inter-account transfers become available in January 2026.
📌 Russia’s central bank has targeted September 1, 2026, for the full public launch of the digital ruble, following a series of phased trials encompassing government transfers, business payments, and various sectors like transportation and real estate.
EU Imposes New Sanctions Affecting Russian Banks and Payments Systems
Alfa-Bank’s pilot testing of its biometric payment system comes shortly after the European Union enacted new sanctions targeting Russia’s financial institutions and energy exports. The EU’s 19th sanctions package, effective November 12, restricts several Russian banks, including Alfa-Bank, MTS Bank, and Absolut Bank, along with the automaker Sollers.
Penalties also extend to foreign subsidiaries of Alfa-Bank in Belarus and branches of VTB in Kazakhstan and Shanghai. The EU has also announced the suspension of operations for the Mir payment system in certain European regions starting November 25.
📊 The latest sanctions package also targets Russia’s industrial and defense sectors, impacting companies such as Rostec, KamAZ, Almaz-Antey, the United Aircraft Corporation, the United Shipbuilding Corporation, and Transmashholding. Moreover, the bloc is extending its ban on importing Russian liquefied natural gas, effective January 1, 2027, and imposing restrictions on short-term LNG deals for major oil companies Rosneft and Gazprom Neft.
⚡ The EU has also intensified its measures against Russia’s alleged “shadow fleet” of tankers used to circumvent oil price caps, banning an additional 117 ships from accessing European ports, bringing the total to 557. Russian diplomats suspected of intelligence activities will now be required to provide notification or obtain permission for travel within the Schengen zone. The EU has blacklisted the developer of Russia’s A7A5 stablecoin, along with eight foreign banks and trading firms accused of aiding Moscow in evading sanctions.
Kaja Kallas, the EU’s foreign policy chief, explained that these restrictions are designed to impede Russia’s capacity to finance its ongoing invasion of Ukraine, stating, Every euro we deny Russia is one it cannot spend on war.
Final Thoughts
Alfa-Bank’s venture into facial recognition payments highlights advancements in secure, contactless transaction methods. This development occurs within a complex geopolitical landscape, marked by international sanctions and evolving digital currency initiatives in Russia.
