A more secure authentication system with biometrics
THE global explosion of digital and mobile payments is driving the need for a more secure authentication system.
And as technology continues to advance, banks and financial service providers are challenged to migrate to new authentication systems that will tighten payment security and, at the same time, improve user experience.
Homegrown online electronic payments and authentication solutions provider Infinitium Group recently announced a strategic alliance with South Korea-based Raonsecure in efforts to improve its technology solutions and to expand its regional footprint in the biometrics authentication market.
Following this partnership, Infinitium will adopt Raonsecure’s Fast Identity Online-(Fido) certified biometric authentication platform with its electronic payment offerings that are already deployed in the current markets. This will pave the way for biometric technology as an emerging methodology for payments and provide stronger security in Malaysia and the region.
Raonsecure is a leading provider of biometric mobile security based on Fido standards in South Korea.
“The biometrics payment market is clearly set to grow, as the adoption of biometric technology for payments continue to gain traction not only in Europe, but also shows a growing market in Asia Pacific region. In fact, a recent release by Fido Alliance cited Asia Pacific region as one of the fastest growing markets for Fido-compliant biometric authentication for simpler, stronger authentication of online services,” said Infinitium chief executive officer Ho Ching Wee.
While South Korea has pioneered strong authentication technologies, particularly with the Fidobased biometric authentication, the rise of this technology is now seen in Asia Pacific.
Ho noted that biometrics is one of the emerging alternatives to currently available authentication techniques, such as a PIN or password, and is increasingly being used in conjunction with other security protocols as a secure way of verifying the account holder’s identity.
Biometrics include the verification of things like a fingerprint or voice recognition.
As biometric authentication becomes readily available for the regional markets, it is set to take e-commerce to new heights given its impact on every aspect of the ecosystem.
In a 2016 report from Juniper Research, biometrics is listed as the number one technology to transform e-commerce.
Additionally, the Biometrics Research Group Inc expects that worldwide mobile payment transactions will reach US$750bil in annual transactions with more than 700 million users by 2020.
“Given the trends in the payments industry, we know that strong authentication using biometric modalities will be a market mover and change the way we manage security in the next few years. Some of the core drivers around biometrics are how to increase usability and provide a better user experience, while at the same time reducing fraud,” added Ho.
The partnership with Raonsecure will offer a range of different services to clients, the first of which will be launched as early as the first quarter next year.
For the first initiative, Infinitium will adopt Raonsecure’s biometric authentication platform to enhance Infinitium’s two-factor authentication products and extend its strong authentication capabilities.
“As the leading provider of Fidobased biometric solution in Korea, we are pleased that this alliance has forged an important collaboration of best practices that enables Raonsecure to expand our regional market reach. The purpose of FIDO-based biometric authentication is to increase the level of security for both the relying organisations as well as the end-user, with an added benefit of providing consumers with greater convenience and user experience,” said Lee Soon-hyung, chief executive officer of Raonsecure.
Ho said this added security will also make it easier for banks and financial institutions to comply with current and upcoming know-your-customer and anti-money-laundering regulations.
“With improved security, merchants and service providers can also expand their mobile offerings and roll out digital commerce capabilities that will spur changes in consumer payment behaviours, giving way to more engaging and secure user journeys and better means of ongoing biometric authentication,” he said.
From an end-user’s perspective, greater convenience for consumers leads to fewer refused transactions.
Additionally, ongoing product and service innovations will make it possible for merchants and fintech players to offer better security and user experience in the future.
Infinitium’s footprint currently covers key markets within Asia, including Malaysia, Singapore, Indonesia, India, Thailand and the Philippines.
The group has an established market footprint of more than 40 banks and over 180 million cardholders within Asia.