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U.S. President To Unveil Immigration Plan; Ukrainian Civilians Suffering In East; Buffalo Sees Massive First Snowstorm Of Season; The Future of Payments; Uber's Cultural Problem; Both Sides Present Roadblocks To Nuclear Deal With Iran

Aired November 20, 2014 - 8:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream where news and technology meet.

Now the U.S. president is getting ready to unveil his immigration overhaul. And already critics are attacking it.

Plus, pain in Ukraine. We'll show you how civilians in the east are suffering despite a so-called ceasefire.

And Uber under scrutiny. The rideshare service finds itself in the hotseat after a series of controversies.

We begin this hour in the U.S. where the country waits for a major immigration announcement. Now U.S. President Barack Obama is expected to

announce an executive order on immigration Thursday evening. It will likely ease concerns for millions of undocumented residents, but also anger

those in congress who don't like being cut out of the reform process.

Now White House correspondent Michelle Kosinski has more.

(BEGIN VIDEOTAPE)

MICHELLE KOSINSKI, CNN CORRESPONDENT: The president now ready to change the landscape for millions of undocumented immigrants in this country, and

announcing his impending announcement on Facebook.

BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES: So what I'm going to be laying out is the things that I can do with my lawful authority as

president to make the system work better even as I continue to work with Congress and encourage them to get a bipartisan, comprehensive bill that

can solve the entire problem.

KOSINSKI: What his plan will do, according to sources, is not a path to citizenship but temporary renewable relief in the form of permission to

stay without being deported and permission to work, expected to include parents of children who are American citizens or have legal status, so long

as those parents have been in this country at least five years.

Also, it will likely expand those same allowances granted by the president in 2012 to people brought here illegally as children, known as dreamers.

But, sources say, it is not expected to include parents of those dreamers, leaving some already to criticize it for not protecting families enough.

On the other side, Republicans furious.

REP. STEVE KING, (R) IOWA: We can announce that we're prepared to cut off any funding that would implement or enforce his unconstitutional act.

GOV. RICK PERRY, (R) TEXAS: If he goes through with this and sticks a finger in the eye of the American people with no thought about it other

than, this is what I want to do and I'm going to do it, then I think he jeopardizes long-term the Democrats ever to get back in power again in

Washington, D.C.

KOSINSKI: According to several recent polls, a majority of Americans would rather see immigrants given a chance at legality than be deported, though a

"USA Today" poll shows slightly more people want the president to wait for Congress to vote on immigration reform than to act alone now.

(END VIDEOTAPE)

LU STOUT: Michelle Kosinski reporting there.

Now, let's look at why immigration is such a hot button issue in the U.S. currently.

Now there are roughly 40 million immigrants in the U.S. both legal and undocumented, that is equal to 13 percent of the U.S. population. It makes

America the number one destination on Earth for immigrants. But a quarter of them, some 11 million, are undocumented. That number has increased year

by year since 2000. And of those who have become legal U.S. residents, 14 percent are from Mexico, more than any other country.

Now there is a lot of uncertainty for so-called DREAMers, now children born in the U.S., but whose parents are living in the country illegally. And

some worry families will be torn apart if the parents are deported.

Now CNN's Anna Cabrera spoke with one of those families.

(BEGIN VIDEOTAPE)

ANA CABRERA, CNN CORRESPONDENT: What do you dream of?

ANGEL OAXACA-RIVAS, DREAMER: I dream of like a day where we can just -- like my family and everything about it can just be happy.

CABRERA: Angel Oaxaca-Rivas is among the millions of so-called undocumented DREAMers, a 19-year-old premed student, Angel came to the

United States with his parents when he was just 4-years-old. His younger sisters, now 10 and 14, were both born in America.

ANEO OAXACA, ANGEL'S SISTER: Since they are my parents, they're the ones who take care of me. Why should they not have papers and I do?

CABRERA: Their parents had a tourist visa when they traveled from Mexico to Denver in 1999. But because of a poor economy and violence in their

native country they decided to stay.

Why didn't your parents try to legally immigrate?

OAXACA-RIVAS: I think -- I've never asked them that. I think the process is just -- is rough. I think when they -- when they got here they just

thought, oh, this is a better situation for our son. Like, there's more work here.

CABRERA: Dad sells jewelry, mom has her own cleaning company, both too afraid to reveal their identities for our story.

OAXACA-RIVAS: My parents are going to keep working probably their whole lives. They're going to keep paying taxes.

CABRERA: Angel explains his parents have an I10 number for tax purposes, but no social security number and no driver's license. They've struggled

to make ends meet, earning 30,000 to 35,000 a year supporting their family of five.

Angel works at a restaurant to help pay for his $15,000 a year college tuition.

OAXACA-RIVAS: I want to be a psychiatrist.

CABRERA: And he's grateful for some scholarships, made possible only after the president took immigration action in 2012, giving him temporary status

and deferring deportation of those brought to the U.S. as children.

Angel hopes whatever executive action the president could take now will benefit his parents.

Could you see why some of the critics might say that that's going to encourage more illegal immigration? What do you tell them?

OAXACA-RIVAS: I can see why. I can see that it could be a possible consequence. But the thing is that consequence doesn't have to be bad.

CABRERA: Ana Cabrera, CNN, Denver.

(END VIDEOTAPE)

LU STOUT: And don't miss President Obama's speech on immigration. CNN will bring it to you live. It's happening 9:00 a.m. in the morning Friday

here in Hong Kong.

Now turning now to a shooting at a university campus in the U.S. Now police say a gunman opened fire at the library at Florida State University

just after midnight. Three students were shot and wounded. And this is smartphone footage from the scene.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There has been a shooting in the library. Stay where you are. We'll be coming to each floor and clearing and taking care of

anybody.

If anybody has a victim, if anybody has...

(END VIDEO CLIP)

LU STOUT: Two of the victims are being treated now at a Tallahassee hospital. One is in critical condition.

Now the third student was treated and released at the scene. Campus officers shot the gunman to death after they say he refused to drop his

weapon and instead opened fire on them. And according to the school's Twitter account, all classes and tests scheduled for Thursday have been

canceled.

The chief of police says the situation is now under control.

(BEGIN VIDEO CLIP)

MICHAEL DELEO, TALLAHASSEE POLICE CHIEF: The next priority is to reassure everyone that there is no indication of any additional threats to the

university, the students or our community at this time.

All indications that we have based on the information right now, this is an isolated incident and one person acting alone.

(END VIDEO CLIP)

LU STOUT: U.S. Secretary of State John Kerry is to join the crucial round of talks on Iran's nuclear program in Vienna. Now negotiators from Iran

and six world powers have just four days to meet a deadline for a final deal.

Now western powers have said that they are skeptical an agreement will be reached in time.

Now for more, let's go straight to our Reza Sayah, he is in Tehran. And Reza, there is growing skepticism about these talks. Tell us what are the

main road blocks?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Well, if you talk to diplomats of Vienna where the nuclear talks are taking place, they'll tell

you that despite these road blocks, they want to deal to happen. If you walk the streets of Iran and talk to Iranians, the overwhelming majority

say they want a deal.

However, there are groups, factions, some governments around the world who seemingly don't want an agreement to happen. Topping that list, the

Israeli government perhaps, in the region states like Saudi Arabia, it's widely believed they don't want a deal to happen. The U.S. Congress,

especially the Republicans, they vehemently have spoken out against a deal.

And indeed here in Tehran, there are factions who could potentially play the role of spoiler if they don't like where these talks are headed.

(BEGIN VIDEOTAPE)

SAYAH: Inside Iran's parliament, under the gaze of the supreme leader, sit what may be key obstacles to a nuclear agreement between Iran and the world

powers. Dozens of hardline Iranian lawmakers who don't trust Washington and don't want to give an inch.

"We don't trust them," says lawmaker Mohammad Ali Bozogvari. "We have no trust for the west, especially the Americans and the British."

"We trusted them in the past and we paid a heavy price," says lawmaker Moayed Hosseini Sadr. "We're only after the interests of our country."

For the past year, ever since the administration of moderate president Hassan Rouhani started negotiating with the west, some hardliners have

criticized him, suggesting he's appeasing the enemy and compromising Iran's interests.

In a statement this month, lawmakers warned Rouhani's negotiating team not to sign a deal that crosses Iran's redlines, which include keeping intact

Iran's nuclear program and accepting nothing less than the lifting of all western sanctions.

"We expect the sanctions imposed by Europe and America to be lifted right away," says lawmaker Ismail Jalili.

"We can't back down more than this," says Bozogvari. "We give the west even one inch, they'll take 10."

"Even though we want peace and good relations with the world, rest assured we're not willing to do it at any price," says Hosseini Sadr.

What's remarkable is how warnings by hardliners here in Iran mirror those in Washington where a Republican-led congress is warning U.S. President

Barack Obama against a bad deal. The warnings drive home the political tensions surrounding the talks in both capitals

In Washington, analysts say, Republicans in congress don't want Obama to score what could be seen as a foreign policy victory with an agreement.

In Tehran, it's hardliners who see a nuclear deal by moderate President Rouhani as a potential blow to their political aspirations and a threat to

Iran's 35-year-old anti-American establishment.

"Our playing politics," says Bozogvari, "but I think the west wants an agreement. So do we. But only if it's fair."

(END VIDEOTAPE)

SAYAH: If there's an agreement in Vienna, it won't be finalized here in Iran without final approval from parliament. so technically the

hardliners, if they have the numbers, they could scuttle the deal. However, it's widely believed that here in Iran the final say rests with

the supreme leader. And if he approves the agreement, Kristie, it's very unlikely that the hardliners will protest.

LU STOUT: Yeah. A major roadblock to those talks underway, the hardliners there in Iran. Reza Sayah reporting live from inside Iran. Thank you very

much indeed for that.

Now you're watching News Stream. Still to come this hour, the struggle to survive in war torn eastern Ukraine and the approach of winter could add to

the misery.

And Uber is caught at the center of yet another controversy. How U.S. Senators worried about something known as God view the company allegedly

uses.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. You're watching News Stream. And you're looking at a visual version of all the stories we've got in the show today.

Now we've already told you about the U.S. president's plan for immigration reform.

And later, we'll look at warnings about a webcam hack affecting people around the world.

But now, let's talk about Uber.

Now the ride sharing service may have to steer itself out of more controversy. On Wednesday, the U.S. Senator Al Franken urged the company

to clarify its privacy policies, in particular he raised concerns about a so-called God view tool that supposedly let's employees track riders'

locations.

Now this follows a questionable idea that Uber's senior vice president floated during a recent dinner party. Now according to a report from

BuzzFeed Emil Michael suggested hiring a team of dirt diggers to expose the personal lives of journalists who criticize the company.

Now Uber's CEO has since apologized saying his colleagues comments were, quote, terrible.

But the actor Ashton Kutcher has a different view. He says, quote, "what is so wrong about digging up dirt on a shady journalist?"

Now, the journalist Sarah Lacy has long been critical of the company. And she spoke earlier to our Laurie Segall.

(BEGIN VIDEO CLIP)

SARAH LACY, JOURNALIST: What was scary about this, which were three things. First, there were the specifics of the budget, the headcount that

was going to be put on me, the fact that the tactic was go after people's families, that's their vulnerability, which it is my vulnerability, and

that it was to be done in a way where no fingerprints would come back to Uber.

I've covered powerful tech companies for a long time and I've never heard a plan like that detailed before And we should say this was a proposed plan

as far as we know. But certainly the specifics around it were such that this was not a guy spouting his mouth of at a dinner.

LAURIE SEGALL, CNN MONEY: Why are you so hard on Uber? What is it about the company culture that really has you stewing?

LACY: I've been really concerned since about 2012 of an escalating culture of bad behavior in Uber that never gets checked and the board and investors

seem to be scared of Travis Kalanick. You know, no one really holds this company accountable.

And that includes things like when women have said they've been attacked in the back of cars and we've called the company for comment, they have tried

to shame those women as being provocatively dressed or drunk, that's pretty horrifying behavior.

Travis referring to the company as Boober, tracking their user's one night stands and you know giving guys props for that.

And then the last straw for me that led to my article that got them so angry was about this campaign that was essentially encouraging men taking

Uber in France to treat female drivers like escorts.

I think there is an escalating and scary pattern of both misogyny and frankly taking people out who disagree with them.

(END VIDEOTAPE)

LU STOUT: All right, journalist Sarah Lacy there.

Let's bring in our regular contributor Nicholas Thompson now. And Nick, why would this Uber executive think that journalists are fair game for a

targeted personal attack?

NICK THOMPSON, NEW YORKER.COM: Well, I don't think that he had any understanding that what he was saying was going to be published. So I

don't think his saying suggests that it was really a plan that they wanted to get out there in any sense at all. This was a private dinner

conversation. He'd had some wine.

On the other hand, as Sarah Lacy said, this is clearly something he'd thought a lot about. I mean, this is a company that has a real cultural

problem. They're very, very aggressive in ways that are not usual in Silicon Valley towards their competitors, towards anybody who criticizes

it.

They went and they tried to disrupt Lyft's funding rounds, which is something you don't see. They've gone and they've canceled Lyft rides. I

mean, they are extremely aggressive in a way that most people in Silicon Valley find a little offensive.

LU STOUT: Yeah, you just put it just then, I mean, Uber has a real cultural problem here. As a result, a number of people are hating on Uber

-- a number of journalists raising an eyebrow at Uber, taxi drivers the world over don't like the app at all. I mean, what is the level of hatred

against the company right now?

THOMPSON: It's very high. I mean, it's -- you watch Sarah Lacy and how can you not hate the company after listening to what she says.

I mean, there have been so many missteps by Uber in the four years that it's been around. I mean, this is a company that has grown extremely

quickly to, you know, tens of billions of dollar valuation in just a couple of years, that has disrupted established industries and has done this with

-- led by Ayn Rand quoting, very aggressive fighter. So that's one hand.

On the other hand, the reason it's grown is that people really do love its service. So I can say that there is a lot of criticism and there's a lot

of hatred in Uber and that it has a real cultural problem, on the other hand, it has a ton of happy customers.

LU STOUT; Yeah. And that's the bottom line, isn't it? I mean, the users, do you think they're going to overlook the other side of Uber and stick

around with Uber as opposed to trying to find a ride elsewhere?

THOMPSON: Well, it depends, right. I mean, if there is -- if people start to really recognize and to worry that Uber is tracking them, that there's

massive privacy violations, that there is this thing called God view that people sort of routinely access inside of Uber where they watch where

everybody is going so they can see, you know, where their girlfriend or boyfriend is going on this evening, or anybody. That's extremely creepy.

And if that gets around and if there are more stories about that, I think people will start to delete the app and stop using Uber.

On the other hand, if Uber can clean this up, if they can apologize -- the CEO has apologized rather ineffectively so far -- and start to make good,

yeah, they have enough happy customers that this company will be OK. But they need to move very quickly to turn this around. They need to hire some

adult supervision. They probably need to let go the executive who said those terrible things to BuzzFeed and they need to start cleaning up their

act.

LU STOUT: Yeah, absolutely right. With Uber in the hotseat they need to make good.

Nick Thompson, thank you so much for joining us. We'll talk again next week. Take care.

You're watching News Stream, coming up on the program, hackers have found a new way to enter your home. Now British authorities, they're launching an

investigation after thousands of baby monitors are hacked. We've got the details after this.

(COMMERCIAL BREAK)

LU STOUT: All right. Welcome back. Coming to you live from Hong Kong, you're watching News Stream.

Now a new security breach in the UK has targeted people where they usually feel safest -- right at home. Now the UK's privacy watchdog warns a

Russian website has been hacking into people's web cams, including closed circuit cameras and baby monitors. And what's worse, the footage is being

streamed live online.

Now CNN's Erin McLaughlin is tracking this from our London bureau. She joins us now. And Erin, how is this footage being collected?

ERIN MCLAUGHLIN, CN CORRESPONDENT: Hi, Kristie.

Well, this is pretty shocking. This website features thousands of videos from around the world. Over 4,000 of the feeds come from the United

States. Over 2,000 of the feeds come from France. And over 1,500 come from the Netherlands. And we are talking about videos or video feeds

showing a child's bedroom in New York, a hair salon in Brazil, someone's living room in Italy.

And this is all because, according to this website, the consumers who purchase these cameras did not change the default manufacturing password

setting on their devices -- Kristie.

LU STOUT: What more do we know about this website?

MCLAUGHLIN: Well, CNN at the moment is not disclosing the web address for this website or the name of the website. It is a Russian-based website.

And on its home page it says that it's doing this to highlight the importance of these security settings.

But, you know, authorities here in the United Kingdom looking at this seeing this breach in people's privacy saying really enough is enough, the

point has been taken now please take the website down.

They say they're working -- or trying to work with Russian authorities to see that that happens. But just before I came on your show, Kristie, I

noticed that the website is still up and running.

LU STOUT: This is such a scary, a very creepy development. Word is now out there. We've been alerted. What can we do? How can we prevent our

webcams, CCTV cameras, our baby monitors from getting hacked?

MCLAUGHLIN: Well, especially when you consider here in the United Kingdom, over 350,000 of these cameras were purchased just last year. And when

authorities here in the United Kingdom are urging people to do is they're urging people to once they purchase these cameras to change the password

settings.

Many of these devices have default passwords, things that are easily found via the manufacturer on the website, passwords such as 1, 2, 3, 4, 5 or

password.

And what they're urging people to do is to change those to something more complex, a combination of letters or numbers, uppercase and lowercase

letters.

They're also urging people that once they purchase these devices to really take time to familiarize themselves with the security settings. And if

they don't want their video streamed online to make sure they choose that setting.

LU STOUT: Yeah, and this is such a very important reminder of how vulnerable we are in the network age. Erin McLaughlin, thank you very much

indeed for that report.

Now Yahoo is touting a win again tech rival Google. Now the Mozilla-made Firefox has just announced a big shakeup in its search strategy. Right now

if you're in the U.S. and you type something in your Firefox browser window, it automatically takes you to Google, but starting next month the

default search will begin routing you directly to Yahoo.

Mozilla has just signed a five year deal with Yahoo making it the default search engine in the United States, though some say the switch from Google

to Yahoo has to do with Yahoo's support for the do not track consortium. It's a group that wants web companies to agree to let users opt out of

advertising tracking.

Now reports say Google currently does not participate.

Now you're watching News Stream. Still to come on the program, in Ukraine the situation is growing increasingly desperate for people inside the

conflict zones. How a recent presidential order is only adding to the misery many are feeling.

And extreme weather in the U.S. state of New York has people dealing with a wintry natural disaster. These stories and more straight ahead.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. And these are your world headlines.

Now U.S. President Barack Obama is moving ahead with his immigration plan by executive order. He is to announce details in a national address on

Thursday night. Now sources say the plan allows the parents who are U.S. citizens to remain in the country even if the parents did not enter the

U.S. legally.

Now three students were shot and wounded at Florida State University overnight. A gunman opened fire at the campus library, which was packed

with students studying for finals. Now this cellphone footage was apparently taken at the scene. Officers shot and killed the gunman. Two

victims are hospitalized, the third was treated and released at the scene.

The chief executive of the company that operated the Sewol Ferry has been sentenced to 10 years in prison. Kim Han-sik was found guilty of

involuntary manslaughter for his part in the South Korean tragedy that killed more than 300 people. Now the judge says Kim remodeled the ferry

and overloaded it with cargo in an effort to overcome the company's deficits even though he knew the ship's ability to balance itself was

compromised.

The United Nations says the ceasefire in Eastern Ukraine hasn't stopped the killing or displacement of civilians. Now a new report says respect for

the truce has been sporadic at best and that an average of 13 people have died every day since it was agreed to back in September.

Now the U.S. Vice President Joe Biden is due to discuss the conflict with Ukraine's president and prime minister today in Kiev.

Now aside from the violence, Ukrainians are suffering from the cold and a shortage of basic necessities. Phil Black reports from Donetsk.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Yuri Posnochenka (ph) breaks down when he remembers the day war came to his town. He lost most of his

home that day, something far more precious.

"I don't miss my house," he says, "I miss my son. We raised him for 36 years."

Yuri says Ukrainian government forces arrived in late July. He shows us the shell that brought down his home and describes how his son was shot in

the chest and died moments later.

This town, Stepanovka (ph), is only a short drive from the Russian border, but fighting here destroyed many homes and drove most locals away. Yuri

(ph) is one of the few to return, but there's no electricity and little food. He says he hasn't received a pension payment in five months.

It's no longer just the separatist held countryside suffering because of war. This angry, scared crowd is waiting outside a bank in Donetsk, the

region's largest city. Many are also unpaid pensioners, but now they're cut off from their savings as well. The Ukrainian president has ordered

the few remaining state banks in separatist territory to close. So they stand in the cold, desperately hoping the doors will open.

260, there were 260 people -- this is the true number of people that are actually in this list. People come here, put their names down in this book

and they give it a number. At the number, it's still pretty early in the morning. It's already up to 260.

"I have no money," this woman says. "I'm 83 years old. I'll probably die because I have nothing to eat."

She's not alone, these people are lining up at what used to be the Donetsk circus. Here, they receive food bundles, paid for by a local oligarch.

It's not much and it must last two weeks before they can get more.

At the bus station, more crowds and grim faces. Many here tell us they're traveling to other cities still in government control to try to get their

bank deposits or collect pensions.

Much of their anger is directed at the Ukrainian government, but that could change if separatist leaders fail to deliver on the responsibilities that

come with the independence they're still fighting to achieve.

Phil Black, CNN, Donetsk, Eastern Ukraine.

(END VIDEOTAPE)

LU STOUT: The first real snowstorm of the season in Buffalo, New York has left the city almost unrecognizable.

Now more than that, the amount of snow on the ground is simply too much to shovel away. Indeed, some people have died trying.

Now more than two meters worth has fallen in a matter of days, leaving a city that is used to snow struggling to cope. The National Guard,

emergency services and firefighters all out in full force.

Jennifer Gray has more.

(BEGIN VDIEOTAPE)

JENNIFER GRAY, CNN METEOROLOGIST (voice-over): Buffalo's deadly monster storm isn't done yet. The lake-effect storm hammered southern parts of the

city Tuesday, dumping nearly six feet. The region now bracing for round two, expected to bring another two to three feet of snow by Friday. An

entire year's worth of snow in just days.

GOV. ANDREW CUOMO (D), NEW YORK: This snowfall may break all sorts of records.

GRAY: The city in a state of emergency. And residents struggling to dig out from under walls of snow.

KAROLL MANKIEWICZ, BUFFALO RESIDENT: It's too much. It's just really a lot of snow here. We're closed in here. It's not just an open area where we can

just fling the snow anywhere.

GRAY: Trapped inside his West Seneca home, James Grimaldi (ph) used an aerial drone to escape his snow-covered garage, capturing this video of the

avalanche of snow left behind.

Driving bans still in effect as major roadways throughout the area remain at a standstill. After stranded drivers were forced to abandon their snow-

buried cars and trucks. Officials say it could be days before the highways are cleared and are warning residents to be careful.

BYRON BROWN, MAYOR OF BUFFALO: Stay home. If you do have to go out, please exercise caution.

GRAY: In the hardest-hit areas, where snow is too deep for plows, crews have had to bring in front-end loaders and dump trucks to haul the snow

out.

The National Guard out in full force to help clear the streets. While EMS and firefighters are depending on volunteers with snowmobiles or venturing

out on foot to rescue those stranded and in need.

The storm now claiming seven lives, some from cardiac arrests shoveling, others simply trapped in the cold.

(END VIDEOTAPE)

LU STOUT: And that was Jennifer Gray reporting there.

In the last hour, we have learned of an eighth death, a man in his 60s died while trying to move a snowplow.

Now, we also wanted to mark the passing of Mike Nichols, the famed American TV and film director. Nichols had a nearly 60 year career and he created

classics including The Graduate along with Working Girl, the Birdcage and the miniseries Angels in America. He was one of the few to win an Emmy, a

Grammy, an Oscar an a Tony. Nichos was a husband of Diane Sawyer of ABC News. And he is survived by three children and four grandchildren.

Nichols was 83 years old.

You're watching News Stream. We'll be back right after the break.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now technology is transforming the way we make purchases as more people choose to pay with the swipe of a phone versus the hassle of a wallet. But

security remains key.

Now Richard Quest looks at the latest payment trends and why biometrics could be the next big thing.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT: From paper to plastic, technology has revolutionized the way we pay. The credit card's magnetic

strip change the point of sale with one swipe.

Today, we are waving our purchases through the era of contactless payment with the help of an in-built chip and antenna.

CHRIS KANGAS, CONTACTLESS PAYMENTS: Contactless was founded on the principle of advancing convenience, but also achieving a high level of

security.

How can I move faster through checkout line? How can I get into the tube fast and easy?

QUEST: This advance in technology has paved the way for mobile payments -- Starbucks, PayPal and Apple offer digital systems that allow retail store

purchases with smartphones.

Consumers can now rely on virtual wallets to negotiate their daily life without using cash or a card.

The future will no longer be the smartphone in the palm of your hand. It may be something you wear on your wrist.

Barclaycard recently launched he Bpay band, which uses technology that can be built into oher products such as a key fob.

VAL SORANNO KEATING, CEO, BARCLAYCARD: The consumers want the things that they carry and the things that they wear every day to do more for them,

including payments.

As technology has given us more choices, we see more of a proliferation rather than a consolidation of payment types. It's become an end, not an

or.

QUEST: While new technology is making payments speedier, providers must convince shoppers that these transactions are safe.

ApplePay uses a fingerprint sensor to validate purchases.

KANGAS: Biometrics is becoming a real part of transactions, which is something totally new in the world of payments at a mass scale.

QUEST: Whether it's a wristband using the wearer's unique heartbeat or a fingerprint scanner embedded into a card, added security features and ease

of use will be crucial to winning over customers with different needs.

KANGAS: Different places around the world have different attitudes about making payments. Imagine having your credentials stored somewhere in a

cloud, in a server that's in a secure place and maybe you're using your biometri in a way that conducts the payment based on your unique physical

attributes. So I think it's about choice in creating options for everyone.

QUEST: In the end, whether card or cash, the smartphone is changing the way we pay as tomorrow is transformed.

(END VIDEOTAPE)

LU STOUT: And that is News Stream. I'm Kristie Lu Stout, but don't go anywhere. World Sport with Amanda Davies is up next.

END