We know that the next big attack vector in the world of payments fraud is going to be in e-commerce. With card counterfeiting becoming much more difficult (thanks to EMV) and payment volumes rapidly shifting from physical storefronts to digital ones, many fraudsters are shifting their focus to card-not-present transactions. TouchTech Payments, a new FinTech start-up founded by Shekinah Adewumi and Joseph Kuye, claims to have developed a solution to rapidly growing threat of e-commerce payment fraud.
“One of the largest contributors to online credit card fraud is the lack of proof that the cardholder is in possession of the card at the time of purchase. Our system solves this problem,’ Adewumi says.”
“TouchTech has used NFC technology to enable consumers to create a mobile wallet on their smartphone that stores a representation of their credit/debit card information. ‘This takes the form of a secure app and is downloaded from the App Store to the consumer’s phone. It then allows the customer to check out in three simple steps without ever needing to manually enter card details, thereby acting as a replacement to ‘Verified by Visa’,’ Adewumi says. Once active, it allows online shoppers to verify their information by tapping their card on the phone or using a fingerprint or a PIN.”
While intriguing, the solution described in this article leaves us with several questions. Does the solution require a physical credit card with a contactless chip to tap against the mobile phone? If not, how does the solution provision and store a digital version of the card to the mobile app? Is that process secure? Is it compatible with all major smartphones?
Hopefully we will learn the answers to these questions as TouchTech Payments scales up.
Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service at Mercator Advisory Group
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