What is HomePay?
Secure Electrans’ HomePay is a concept which is revolutionary in its simplicity – a device that allows safe, secure EMV Chip & PIN transactions at home.
While it has recently been reported that overall fraud figures have reduced, this masks the fact that card-not-present (CNP) fraud is a growth area. It continues to grow exponentially along with the expansion and growth of eCommerce itself. Global eCommerce transactions were £693bn in 2009, and have expected sustained growth of 19.6% per annum from 2008 to 2012*. It stands to reason that in the UK, card-not-present fraud represented the majority - 62% (£226.9m) - of total card fraud in 2010**. Increasing fraud levels mean that the payments industry needs to plough increasingly higher volumes of resource into combating the fraudsters, merchants have their margins squeezed even tighter & ultimately the consumer ends up paying more.
Workaround solutions such as Verified by Visa and MasterCard SecureCode have proved almost universally unpopular with consumers and merchants alike and have been reported as providing a poor user experience for the cardholder, leading to increased numbers of abandoned transactions for the merchants. EMV Chip & PIN is a trusted, secure way to pay, so it’s the next logical step to extend this proven technology beyond the existing retail environment.
By extending the use of EMV Chip & PIN to the home, HomePay signals the end of the workaround solution. By adopting the safe and trusted transaction method now found in the majority of retail outlets in the UK & Europe, HomePay utilises the existing banking security architecture & means that eCommerce is no longer the weakest link in the card fraud chain, allowing the multi-factor authentication used by retailers to provide location authentication in addition to card & cardholder authentication.
eCommerce is just the beginning. HomePay technology can easily leverage existing trusted security frameworks to provide secure access, data encryption, authentication & verification for remote services such as online banking, financial services brokerage & pension management, medical alerts and utility value loads to name but a few of the myriad of value added applications that are possible.
* CapGemini/RBS – World Payments Report 2010
** Financial Fraud Action UK – Fraud Report 2011