NXT-ID has taken the next steps toward creating a personalized tokenization payment technology.
This next-generation payment tech from the biometric authentication company is part of a provisional patent that was recently filed by the company. The technology aims to use unique personal identifiers to generate the token. This would, of course, include biometrics as one of the unique IDs.
“What is unique about this invention is that it uses local authentication to not only secure access to payment accounts selected by a user, but also generate unique, one-time-use tokens that identify both the user and the account, without revealing any sensitive information whatsoever during the transaction,” David Tunnell, CTO of NXT-ID, said in a July 21 news release. “Since local generation of unique tokens is performed offline within a mobile device or smart wallet, no vulnerable server is required to generate the token, keeping the token safe from attack and preventing fraud throughout the transaction.”
NXT-ID’s CEO Gino Pereira commented that the company is working on building its patents and IP portfolio as a way to keep up with the technology curve of the payments industry as it changes rapidly.
NXT-ID is also the creator of the Wocket, the smart wallet that’s designed to be the wallet that replaces consumers’ cards. The Wocket works in most places credit cards are accepted and works without needing a smartphone or cloud to store data.
“A mobile device such as a smart wallet equipped with the new personalized token technology capable of generating these secure tokens will go a long way to help fight both financial fraud and security breaches that are becoming so common place. Personalized tokenization compliments other encryption and tokenization methods such as EMV by adding biometric and other authentication to token technology,” Tunnell said.