Earlier this week, reports surfaced that a security researcher was claiming to have hacked an Amazon server and dumped the information of tens of thousands of users online. (So far, Amazon has dismissed the incident as nonsense.) And fast-food chain Wendy’s is also grappling with a very real breach affecting more than 1,000 outlets nationwide. Those reports underscore just how prevalent security breaches are and how devastating they can be.

Biometrics predicted to become more widespread at POS systems.

Sure, credit card companies are now issuing chip cards, which are more secure than those old magnetic-stripe types. But they aren’t as secure as chip-and-pin, which is standard in Europe. Those cards are equipped with a chip that generates a unique code for each transaction, which makes it more difficult to churn out fake cards for future fraudulent purchases. However, biometrics provide even more security.

Biometrics include technology such as fingerprint systems, facial recognition, iris scanning and voice identification. Biometrics Research Group predicts the global biometrics market to soar to $15 billion this year, up from an estimated $7 million just three years ago. And, technology consulting firm Frost & Sullivan predicts that nearly a half-billion people will be using a smartphone equipped with biometric technology by 2017.

Can You Prove Who You Are?

One of the big benefits biometrics could offer the retail industry is PoS payment authentication. Just as facial recognition can help airports and arenas scan crowds for fugitives, biometrics can help retailers verify shoppers’ identities — even online stores. For example, Amazon has filed a patent application for biometric technology that could be used for identity verification.

Amazon’s technology works like this: The person attempting to sign in or complete a purchase is prompted to “perform an action in view of a camera or sensor.” After completing a sequence of checks, the program identifies the shopper and verifies the person is a living human rather than simply a photograph. The customer might be asked to wave or make another type of gesture, for instance. Once the user is authenticated the transaction can be completed.

Right now, fingerprint recognition is the easiest, most accessible way retailers can bring the security of biometrics into their operations without too much investment. Debuting on Sept. 10, 2013, the iPhone 5s was the first phone to feature such biometric technology. Today, brick and mortar businesses — in particular, cafeterias at schools and nursing facilities — are using fingerprint solutions to allow patrons to quickly access accounts without having to remember passwords or swipe cards.

Moving beyond alphanumeric passwords is critical for continued retail growth. Biometric security technologies can be integrated into just about everything — for retailers both online and off.

E-commerce may only comprise 10% of the total retail market, but that’s a $341.7 billion slice. Quite a big piece, indeed.

With 90% of the retail space not engaged in e-commerce, there’s a huge amount of growth potential in the sector. Typically, local businesses have only a small e-commerce business, if any at all. In effect, those businesses are neglecting an excellent means of promoting their businesses and losing sales — both online and in-store — as a result.

Having even a small e-commerce site can help a small retailer promote its business.

Many local store owners believe having a storefront is enough visibility, and that opening an online store is, frankly, too much of a hassle. A boutique home furnishings store might, for example, have frequently changing inventory. But the ability for a customer to browse the shop’s offerings online may outweigh the potential any given item is not immediately available.

Of course, most shoppers understand that their local merchant might have to order an item or that a similar product might have to be substituted. But the way those shoppers are using the Internet is as a recognizance mission. It is a nuanced meaning of convenience shopping. Rather than ordering the product from the site, they simply want to see if the retailer offers it, or offers a style of the desired product. For example, they want to go to the local natural food store’s web site, see that in fact it does carry essential oils, and then stop in at a convenient time to peruse the offerings in person.

The advantage is not just to provide a means for shoppers buy online, although that certainly is a part of it. Rather, it’s to extend the local merchant’s appeal. Local businesses are far more adept at cultivating relationships that e-commerce merchants are, even those who have sizable brick and mortar presence. It’s far more likely that the neighborhood women’s apparel store will know your name, your children’s names and your shopping preference for your sister than Macy’s will.

And that is the key to small business success: Knowing thy customer. It’s something successful mom-and-pops excel at naturally. It’s an asset that neighborhood stores have naturally and that the big boys must work at constantly. That relationship between small business owner and customer is like gold.

That’s why an e-commerce site is a “thank you” to your loyal customers: “Here is something that will help you shop more efficiently. It’s a recognition of your busy schedule and a tool to assist you.” It keeps your store top of mind and, in combination with other customer relationship management tools, allows you to effectively compete against the behemoths at 1 am on a Wednesday morning.