New identification solutions being worked on for mobile payments

New identification solutions being worked on for mobile payments

We have long said one of the dark sides of our Digital Lifestyle investing theme is a tailwind for our Safety & Security theme, and a new report makes the case for the not only the reverse, but it also invokes our Disruptive Innovators one as well. I’m talking about mobile payments. With debit and credit card transactions, the security layer was a signature or a pin code, but those have been replaced with fingerprint recognition and with Apple’s iPhone X, face recognition dubbed by Apple as FaceID. This new report suggests we are poised to see new forms of security ranging from eye-based identification to blood pressure, especially as new forms of two-factor identification are launched by the likes of Samsung and others.

While we applaud the focus on greater, and potentially smarter, smartphone security, in part because a greater comfort level is likely to boost mobile payment usage, as users we would suggest solutions that do not add multiple steps that make the experience secure but cumbersome. We don’t think anyone wants to be the “the person” that leads to a back up in the line to get on the Tube in London, the subway in New York’s five boroughs or in the self-checkout line at your local grocery store.

 

A recent report by Juniper Research predicts that the biggest shift coming in the mobile payment security industry is a movement toward software-based methods for verification that rely on standard smartphone components.

“Mobile payment security will broaden hugely thanks to the implementation of pure software solutions,” remarked report author James Moar. “The key battle now will be to convince users, particularly those in Europe and North America, that these methods are just as secure as traditional hardware-based security.”

The company added that with the iPhone X, and other smartphones offering facial and eye-based identification, fingerprint sensors will decline as a proportion of smartphone biometrics hardware, from just over 95 percent in 2018 to below 90 percent by 2023.

Samsung, in particular, is working toward other areas of authentication, including a method that detects users’ blood pressure. According to a patent filed by the company, “the arterial conduction paths of different users are almost never identical.”  Samsung is reportedly looking into replacing static and hackable PINs and passwords, with a one-two authentication combo by pairing users’ blood pressure with their unique fingerprints.

Source: Fingerprint Scanner Tech To Grow 500 Percent | PYMNTS.com

iPhone to be proof of identity and replace passports?

iPhone to be proof of identity and replace passports?

We’ve all heard about and even longed or the day when we would no longer have to carry one’s money, credit cards, keys, and identification. Mobile payments like Apple Pay and aspects of the Connected Home have helped ease the burden on our pockets and bags, but identification has been the more elusive category. It seems, however, that Apple is looking to address that using the iPhone as a form of identification. Odds are Apple would first test such authentification on its own campus, but the possibility of replacing drivers licenses, passports and other forms of identification with the iPhone, even if mixed with another form of biometric security, is an intriguing idea. It’s also one more way Apple would make its already sticky products and services even more so with its growing user base. For investors and Apple shares, it would move them even deeper into our Safety & Security investing theme.

 

In future identification challenges, the device will be asked for the credentials by the authority, triggering the device to perform an authentication check with the user. While this could be as simple as entering a password, there is also a version that uses biometric security for the device-based authentication.

In either case, successful authentication on the device would hand over data to the requesting party. The patent application also cites the growing use of e-Passports, which includes a chip that stores an assortment of data about a user, including their name and date of birth, which can be used by customs officials to determine the user is who they say they are. Apple suggests the described system could potentially hand over a passport number or other similar data, to perform the same check.

While in most cases the patent application suggests the use of not-yet-produced hardware, in this case the components are already in place, in the form of the iPhone. It already has radio-based communications with NFC, an encrypted secure enclave that holds fingerprint and facial map data for Touch ID and Face ID respectively, and biometric-based authentication systems.

Such a system could be used by private companies, for example in authenticating employees entering a facility, but while the suggestion for the passport number is plausible, legislation becomes the stumbling block.

Source: Apple wants iPhone to be proof of identity and replace passports