LoginID announced additional investment from Visa on the heels of its $6M seed round from veteran payment and fintech entrepreneurs. The investment amount from Visa is undisclosed.
Customers are readily accepting the use of biometrics to make payments and other transactions in a secure and convenient way. According to an April 2021 pymnts.com report, 18 billion payment transactions will be verified using biometrics in 2021.
Visa recognizes that strong authentication solutions from companies like LoginID help promote its vision to improve integrity around payments – both reducing fraud and helping merchants meet global regulatory and compliance demands.
LoginID provides a wide range of APIs and SDKs which give companies the ability to easily integrate FIDO-certified authentication to any website, application or e-commerce, or banking brand in as little as 15 minutes. This level of authentication is usually complicated and time consuming to integrate. Now brands can add the customer authentication rules, meet new compliance regulations and reduce fraud using biometrics.
“Visa recognizes its role in promoting a secure payment experience for consumers and a frictionless transaction processing for merchants,” said Simon Law, CEO of LoginID. “Together, we are helping companies integrate and scale strong authentication at low cost, while ensuring compliance with PSD2 and GDPR regulations.”
“Visa has earned the trust of consumers, financial institutions and merchants over the past sixty years to become the world leader in digital payments by integrating payment innovation with security,” said Melissa McSherry, Senior Vice President, Global Data, Security and Identity Products at Visa.
“Biometric technologies offer greater convenience and stronger security, and are the gold standard for online authentication. Visa’s investment and continued partnership with LoginID will help deliver innovative solutions that will improve convenience and payment security.”
As of January 2021, PSD2 requires merchants to meet new levels of accountability with payment transactions and authentication. Customers want a smooth, easy online checkout experience, and integrating these authentication steps make the process complicated for merchants who are concerned about their customer experience being compromised.
As card issuers have new requirements to reduce fraud, breaking down the barriers to adding authentication is a focus area for major financial service brands.