While investments from large firms such as Mastercard and Samsung don’t ensure adoption, it sure doesn’t hurt. It should also be noted that Mastercard and Samsung are partners in Digital Identity Services. HYPR offers a mobile authentication solution that utilizes private/public key pairs and is FIDO compliant. The CEO also indicates that the business has seen tremendous growth due to the requirements of PSD2.
Below is an article that provides more information on HYPR and its recent investment news:
“HYPR does things differently. The startup’s tech stores private cryptographic keys, secret strings of numbers and letters associated with a person’s identity, on mobile devices. In practice, logging on then becomes as simple as tapping a button on one’s phone.
Avetisov compares the technology to the public key encryption used in smart cards, except without the card. “We’ve taken that same concept and put it on your mobile phone to eliminate your password,” Avetisov says.
Ultimately, Avetisov aspires “to kill the shared secret,” including ATM PIN codes, Social Security numbers, and credit card numbers.
How it works
HYPR’s technology consists of software development kits, or SDKs, that developers can load into both consumer-facing and enterprise apps. HYPR solely takes care of authentication, the confirmation of people’s identities, while leaving the management of people’s identities up to companies such as ForgeRock and Okta, which are partners and resellers.
Avetisov points to a piece of European fintech legislation, PSD2, that in part regulates the way businesses authenticate customers, as an accelerant for HYPR. ‘It has been such a big driver of our business, man, I can’t even tell you,’ Avetisov says. ‘That’s why we opened our [Europe] office.’ ”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
