Jack Ma, founder of Chinese e-commerce giant Alibaba Group Holding Ltd., recently demonstrated the company's new electronic payment system that uses facial recognition technology at the ongoing CeBIT 2015 in Hanover, Germany.

Users of the new payment system will have the ability to purchase items online by scanning their faces for secure transactions. Ma hopes it will go public in 2017.

Like Us on Facebook

"I want to take this opportunity to demonstrate a small innovative product that we designed," said Ma. "[Using] online payments to buy things is always a big headache," Ma continued.

"You forget your password, you worry about security. Today we'll show you a new technology, how in the future people will buy things online."

Ma demonstrated the use of the technology by buying a gift for the mayor of Hanover, which is a stamp that dates back to 1948.

Pressing the buy button on a smartphone will provoke the face recognition procedure. An outline will then appear on a user's smartphone screen to capture a selfie.

"In six days this stamp will be delivered to the office of the mayor of Hannover," Ma added.

According to a report, the new payment system is now being tested by an online payment services provider and an affiliate of Alibaba, Ant Financial.

Other Chinese tech giants present at the CeBIT 2015 include the world's third largest smartphone maker Xiaomi Inc., computer maufacturer Lenovo Group Ltd. and telecom giants Huawei Technologies Co. Ltd. and ZTE Corporation.

Edward Snowden, former NSA agent, will also be present at the event on March 18 via live remote video from his place of exile, Russia.

TagsAlibaba Group, Jack Ma, e-Payment System, Security, Ant Financial, CeBIT 2015, Germany