Credit card fraud costs the banking industry billions of dollars every year, and with companies yet to find an entirely secure system for processing payments online, there's no end in sight for unauthorized transactions. Jumio hopes to bring both security and convenience to the world of online payments, however, with its webcam-based Netswipe secure card reader solution. The system replicates the point of sale (POS) transactions you experience when making in-store purchases, prompting cardholders to scan the front on their credit card, then enter their CVV code using a tamperproof mouse-controlled interface. We're not sure how the software is able to distinguish a physical credit card from, say, a photocopy of a card, but it certainly sounds more secure than the standard input form we use today. It also reduces card number theft from insecure forms and website spoofing, by verifying details through a live video stream. Jump past the break for the full press release, along with video overviews of Netswipe and Jumio, which recently secured $6.5 million in initial funding and is backed by Facebook co-founder Eduardo Saverin.
Company Launches Patented Netswipe Solution to Reduce Fraud for Merchants; Makes Online and Mobile Payments Easier and More Secure than Ever
MOUNTAIN VIEW, CA – JULY 26, 2011 - Payment company Jumio today unveiled a new technology solution for businesses to increase security and ease of use for online and mobile credit card payments. Jumio's patented Netswipe solution turns a webcam into a secure credit card reader that allows merchants to more easily and efficiently accept payments online.
"Jumio bridges the gap between the security and trust of credit card payments at the point of sale and the availability and convenience of modern day online transactions," says Jumio founder and CEO Daniel Mattes. "Consumers love the ease-of-use and the smooth experience associated with completing a transaction. At a time when both consumers and businesses are looking for more efficient and safe ways to make credit card purchases, Netswipe promises to usher in a new era of disruption that makes online payments easier than ever before."
Bringing Card Present Transactions Online
Jumio developed a technology that utilizes any webcam as a credit card reader to offer consumers a quick and easy way to make purchases online. Netswipe is the first and only solution that enables online card-present-transactions: Checking out just like at the point of sale (POS).
To complete a transaction, consumers briefly hold their credit card in front of their webcam. Through secure videostreaming, the credit card details are being recognized and verfied. No snapshot image is being taken, no data is stored on the computer that is used for the payment.
A More Efficient Payment Technology for Merchants
Business owners can implement Jumio's Netswipe service into their payment process to reduce fraud and increase sales due to a heightened user experience.
"During our pilot phase, we have conducted a customer survey with a focus group who have used Netswipe. Amongst other impressive numbers, the churn rate decreased significantly from 52% to 21%." (Mattes)
With the launch, Jumio has introduced three products for merchants that simplify the online payment process: Netswipe Start, Netswipe Scanning and Netswipe Processing. Additional products including a mobile solution will be released later this year.
Partners, High Profile Board of Directors
Jumio's pre-launch negotiations attracted an impressive list of partners. Facebook co-founder Eduardo Saverin, member of the Jumio board of directors, previously led a Series A funding round of US$ 6.5m and will oversee Jumio's rollout into the Asian market.
Says Saverin: "I am very excited to be involved with Jumio, which has developed a ground breaking technology that fulfills two of the most important aspects of payments processing: heightened security and a simplified user experience."
Additionally, Jumio's advisory board includes former executives from Google, Amazon and NASA.
Jumio offers an advanced technology that increases security and ease of use for online and mobile credit card payments. Jumio is the inventor of Netswipe, a patented solution that turns any webcam into a credit card reader. Jumio's advisory board includes Zain Khan, former Google executive, Mark Britto, former Amazon executive, Thomas Jungreithmeir, managing director of TJP and Bjorn Evers, former gaming industry CEO. Facebook co-founder Eduardo Saverin has a seat on the board of directors.
Jumio Inc. is headquartered in Mountain View, California and operates a development center in Linz, Austria. The company was founded in 2010 by Daniel Mattes and employs 35 people. More on www.jumio.com