Monday, 11 February 2008

Compromise Redefined !

Over 162 million electronic records containing data like credit card, social security numbers etc were compromised in 2007!!!!

With an increasing number of cases of data theft globally across retailer and financial institution databases, customers quite often seek simple solutions that offer greater online transaction security. The challenge is not only with credit card number details but a wide array of personal records including driver's license, PAN card numbers and other personal details.

Credentica is working on a product that would enable customers to enter partial information and not divulge the complete details whilst completing an Internet transaction.

Those who are "tech" oriented can visit their site or the recently published article in Wired.

However there are two key aspects that we need to address at this time, and which continue to infuence the growth of e-commerce....
a. Most researches conducted in India continue to indicate that online security continues to be an area of concern for customers to reveal their credit card details in an online transaction

b. With increasing instances of compromise of personal & transactional identity information, are we investing sufficiently in working towards a more secure payment mechanism for the Internet and mobile?

Cards & Transfers Redefined

There's a small revolution brewing in North America...........coincidentally called the Revolution Card!

There are two products actually....the first is a credit card which consists of a card which has neither the card-holder name nor the card number embossed on it! The cards can be used at the existing Point of Sale (POS) infrastructure and would require customers to use pins to complete their transactions.

The USP - significantly lower merchant interchange fees of 0.5% vis a vis the prevailing rates in the range of 2% ( in North America). For the customer much greater security and identity protection.

The second product is an online money transfer service, that enables customers to transfer funds free of charge! There are fees incurred for withdrawals and some deposit transactions. Quite a healthy benefit for customers using Paypal, Western Union and similar wire transfer services.

The company is backed by Steve Case, one of the founders of AOL and has received funding from an interesting array of investors including Citibank, Morgan Stanley and Deutsche Bank.

The payments industry has typically been driven by Visa, MasterCard, American Express and a few others. Innovations have been typically been incremental & reactive and not always quantum in nature. It is refreshing to see the birth of an all new player that might just change the rules of the game.....