Coin Responds To Post-Launch Security Criticism

By Pete Rizzo (@pete_rizzo_)

San Francisco-based connected device startup Coin exploded onto the payments scene this November when it announced that it would market a bluetooth solution that allows consumers to store credit, debit and loyalty cards onto a single magnetic-stripe device. Helped by a contagiously shareable video and heavy media reporting, Coin topped its $50,000 crowdfunding goal in a head-turning 40 minutes.

But, while the market was quick to embrace Coin, it just as swiftly took issue with what CNET called the device’s “obvious security issues.” Further, commentators weren’t exactly impressed with Coin, suggesting that it would do little to eliminate point of sale friction in a way that’s sustainable long term.

In an exclusive interview with PYMNTS.com, Coin CEO and founder Kanishk Parashar spoke at length about his company’s initial round of feedback, addressing both points of criticism. Parashar downplayed security concerns as simply the result of a lack of communication on Coin’s part (Jump to 0:56 ) .

Parashar did acknowledge that security was the “main point of feedback,” and noted that his company has since pledged to make improvements, building in fraud alerts and making the device easier to use without a connected smartphone. The CEO also elaborated on the Coin features that he believes will help reduce merchant risk during transactions (Jump to 4:50)

“What Coin does, is when a Coin user logs in, we double check and verify that the user is actually them, and we make sure that every user inside Coin is the owner of that card information,” Parashar said.

For more on why Parashar believes Coin will succeed where past solutions such as iCache have failed (Jump to 1:26), how card networks reacted to its solution (Jump to 2:57) and the two main reasons Coin decided to opt for plastic in a world that’s increasingly trending digital and mobile (Jump to 6:30) listen to our full podcast below.

*If you have trouble with the audio player above, click here.

Kanishk Parashar, CEO and founder, Coin

Kanishk Parashar is CEO and founder of Coin, a Bluetooth Low Energy Connected Device that will replace every other card you own. Prior to launching Coin, Kanishk attended John Hopkins University and led technical positions in companies such as eBay, PayPal, Yahoo and Oracle. From there, Kanishk realized there was a huge need to bring simplicity and familiarity back into the payment system, which lead to the launch of Coin in 2013.