However, for the Cavio system to work, both trading partners must use the system. In addition to thwarting fraud, use of the system will help eliminate the multiple levels of broker commissions now commonly used for international trade by doing away with much of the participation and LC origination fees charged by banks. Buyers on average will save 4 percent to 6 percent, Mann said. Cavio will charge 1 percent of each transaction, while banks will benefit from the fees on interbank fund transfers and eliminate much of their risk and legal entanglement resulting from fraud. But some analysts questioned whether biometrics may be intrusive, even for specialized applications like international trade.
Many people feel biometrics is invasive.
It will probably be 2003 at the earliest before the technology is a viable replacement for passwords, analysts said.