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Future of e-commerce: full KYC using biometric tokenization to keep data safe

The future of digital ID verification is now the key to keeping e-commerce costs under control. Jumio, a leading provider of digital ID and control systems have published an infographic summarising the four security and identity verification trends to watch on 2017:

  1. Multi-factor (MFA) will take a biometric twist
  2. Know Your Customer compliance will get digital as the business of identifying clients will be digitised
  3. Trust will move to centre stage in the sharing economy, e.g. In AirBnB, HomeAway, Uber, etc.:
      • Source & Copyright©2016 - Jumio
  4. Technology will expand the meaning of digital ID as it moves from still photo, name, and address to include many other methods as well:
      • Source & Copyright©2016 - Jumio

Avoiding sending personal biometric data

Tokenization is going to be a vital technology in e-commerce. The sending of full biometric will be replaced by a token summary of the biometric data. As George Avetisov in SDCExecutive reports, “Biometric tokenization, when deployed correctly, empowers companies to integrate a fully biometric and flexible multimodal authentication experience. Enterprises can finally offer employees and customer-facing applications the ability to authenticate with voice, face, touch, eye and palm recognition. How often do solutions in today’s crowded security marketplace offer ironclad security, a pristine user experience, as well as flexibility for both application provider and user?”

He continues, “Verifying identity and transactions on device in a wholly decentralized protocol ensures that a user’s biometric data never leaves their personal device. Rather, the user’s correct biometric signature generates a token that grants entry to various online services. Try to picture tokens as really strong passwords that change every time you log in and are only accessible to you. Tokenization is already in use on the chips that were added to most new debit cards. When the card is swiped, the chip sends a unique token that represents the card number and changes every time, so it becomes much more difficult for a hacker to steal the card’s actual information.”

CTMfile take: Digital identities and KYC - in all its many forms - is probably the biggest processing problem facing corporates today. Full digitisation of the process combined with tokenisation is the way to go.

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This item appears in the following sections:
Financial Supply Chain Platforms
Trade & Counterparty Risk Mitigation
Collecting Payments on the Internet
Collecting Payments via Mobile

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