[MONEY 20/20] Korea’s SSenStone Unveils Single-Use Credit Card Number Technology for Ultimate Security
[THE INVESTOR] SINGAPORE – Korean digital security start-up SSenStone on March 14 launched a whole new way to use credit cards securely online: a one-time credit card number that changes every time a new transaction is carried out.
The technology, called Virtual One Time Code, or VOTC, creates virtual numbers that cannot be duplicated for more than a million uses. More importantly, the company said, the number recognizes the cardholder every time without any network connection.
“We are in talks with several credit card companies for possible partnerships,” SSenStone CEO Yoo Chang-hun told The Investor on the sidelines of Money20 / 20 Asia in Singapore this week.
“A unique credit number is the ultimate solution in the fight against credit card fraud. ”
SSenStone was one of the top five security solutions companies to attend the startup launch event at the three-day Asian edition of the world’s largest fintech trade show which ended on the 15th March.
According to the CEO, smart cards and improved security solutions may have significantly reduced offline credit card fraud, but cardless online transactions have become increasingly vulnerable to crooks.
Of the total losses from credit card fraud worth $ 21 billion worldwide, more than 70% now comes from CNP fraud, mostly on e-commerce transactions.
“The beauty of our technology is that you don’t have to install additional machinery or infrastructure to apply it. We can block all CNP fraud cases, without more complicated token methods, ”Yoo said.
The company hopes to provide the solution to card issuers or card companies and charge them a license fee on each card account, while seeking a strategic alliance with online payment service providers and security companies to create a new business model based on revenue sharing.
“Our goal is not to compete with existing solutions. We want to work with them to create a new payment security ecosystem, ”said the CEO.
SSenStone, established in 2015, develops next-generation authentication solutions and its Fast Identity Online or FIDO-certified platform called StonePASS has been widely adopted by Korean financial and public organizations.
The company’s annual sales are estimated at 50 billion won ($ 46.5 million) this year. Its main investors are SparkLabs and Lotte Accelerator. Last year, Lee Joon-ho, former chief information security officer at Korean internet giant Naver, joined the company as co-CEO.
By Lee Ji-yoon ([email protected])