Wave Systems Corp. (News - Alert) has partnered with Bell ID, a chip lifecycle management solutions company, to offer a joint solution aimed at reducing online payment fraud.
This solution will be marketed primarily to card issuing banks, as well as online merchants, governments, and enterprises worldwide.
Bell ID's Trusted Service Manager and Secure Element in The Cloud (SEiTC) server, in combination with Wave's ERAS for TPM management and Wave's endpoint identity and monitoring expertise, offers robust protection for transactions and stored payments.
Both the companies have executed a letter of intent and anticipate the signing of a definitive agreement in August. The card-not-present (CNP) fraud incident rate is outpacing other fraud types over the past several years. According to a recent FICO Banking Analytics Blog, CNP fraud now accounts for close to half of all credit card fraud.
The countries that have already adopted the EMV card specification have seen CNP fraud rates increase. In the United States, CNP fraud is expected to rise significantly over the next eighteen months, as the EMV standard is put into effect. The EMV directive will make merchants liable for any fraud resulting from transactions on systems that are not EMV-capable.
Bill Solms, CEO, Wave Systems, said in a statement, “Wave's robust product portfolio is very complementary to Bell ID's strongly positioned solution set in the financial services market, We see the EMV transition creating high demand for more secure transaction capabilities, and are confident that together we can provide financial institutions with a comprehensive solution for payment authorization and storage.”
Pat Curran, Executive Chairman at Bell ID said, "We also have extensive experience in delivering EMV solutions globally and have witnessed fraud transition online as point-of-sale terminals in face-to-face transactions become more secure. We are therefore delighted to extend our offering with Wave to provide a secure online transaction and storage payment solution, which will mitigate against an expected rise in online fraud and provide a trusted link between device identity and internet services."
Edited by Adam Brandt