How Can Retailers Benefit From ID Scanning Technology?

How Can Retailers Benefit From ID Scanning Technology?
2 years ago

Advanced mobile ID scanning technology is increasingly becoming essential to retail businesses. Retailers can deploy this modern technology primarily to collect information from identity documents. Fast and accurate scanning can ease the shopping experience for over 70% of U.S citizens with credit cards. If you haven’t heard of or used an ID scanner, below is a guide on how it works and how retailers can use it in their businesses.

How Do Mobile ID Scanners Work?

Mobile ID scanners combine several technologies, including optical character recognition (OCR), Near Field Communication (NFC), and barcode scanning. Combined, these technologies enable and upgrade camera-equipped devices into an enterprise-grade scanning device that can detect and read biometric RFID chips, MRZ (Machine Readable Zones), and PDF417 codes used in various identity documents.

Optical character recognition is specifically used in ID scanning for retail. OCR technology allows all smartphones to recognize alphanumeric codes typically used in driver’s licenses, passports, and national IDs.

Benefits of ID Scanners in Retail

The retail industry can use an ID scanner in several ways. Common applications include:

1. Credit card application

The financial sector can take advantage of ID scanning technology to shorten and simplify credit card applications. As mentioned, only 30% of U.S citizens don’t have a credit card that they can use to purchase goods from retail stores. Fortunately, retail outlets can easily enroll their customers to credit card programs with this technology.

Retail stores can use ID scanning machines to quickly collect customer data and issue credit cards. ID scanners also help validate confidential customer information, such as name, age, account number, and address.

2. Verifying age for controlled goods

Retailers selling controlled goods, such as tobacco and alcohol, should adhere to various regulations. Among them include mandatory verification of customer age before checkout. ID scanning technology makes the verification process simple, accurate, and contact-free. This improves customer experience and satisfaction, while retailers avoid legal consequences.

With ID scanners, retailers can confirm buyer age and store records to verify age compliance. U.S. and Canada-issued driver’s licenses have a PDF417 barcode at the back, which ID scanners can read. Retailers can also use OCR technology to read printed text on the front side.

3. Improved ship-to-store pickup

Modern customers prefer shopping for goods and services online. While this positive trend highly benefits customers, most retail outlets have experienced challenges matching customers with their products, especially when shipping or during collections.

Poor product identification and matching have led to increased theft and loss of goods. Fortunately, retailers can use ID scanners to verify that the order was placed by the person who appears in the store to collect the products.

4. Retail marketing

Retailers can also use ID scanning technology to craft their marketing campaigns indirectly. You can use collected customer information to study customer patterns, shopping behavior, purchasing power, and more. You can create a marketing campaign tailored to suit your customers with these details. You can also stock and price important products accordingly.


Besides keeping their business updated with current technology trends, retailers should adopt ID scanning technology to improve customer shopping experience and foster business growth. Other benefits of ID scanning technology in retail include simplifying customer returns and enrolling customers in loyalty programs.

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