Shinhan Card, in collaboration with Interpay, is launching a high-tech solution, translated as ‘payment authentication without needing your card’ which allows users to perform authentication within his/her smartphone, for the first time in Korea.
This is the first example of a market leading credit card company employing Interpay’s FinTech solution, showing closer collaboration between the Financial and IT players in this market.
According to a source from financial industry, Shinhan card will enable the TrustZone(TZ) based One Time Password (OTP) solution provided by Interpay within their application.
Interpay’s TZ OTP application uses two factor authentication and signing to secure m-commerce and banking transactions made through a range of third party applications. It enables access to the enhanced security features of the Trustonic Trusted Execution Environment (TEE), a cryptographically locked, secure operating environment built into leading Android devices at the point of manufacture. This is the first time this has been applied to the B2C Financial services offered by Shinhan card, enhancing the security levels with additional hardware security protection.
The current authentication in the service requires the user to carry the designated card with the passcode enlisted, but this new service allows users to fulfil the authentication process without leaving the smartphone screen. This improves the user convenience using the Mobile App-Card service with enhanced mobile security. Truly making cardless payments a reality.
Another historical aspect of this collaboration highlights the benefits of partnership between larger financial corporations and start-ups with advanced IT-security expertise. Together they can create role models for bringing new innovative secure solutions to the market using the smartphone as a reliable method for safe, secured payments.
The government sector played a significant role in connecting the two companies through the Financial Services Centre (FSC) FinTech support program. Financial authorities facilitated events such as the FinTech Demo day enabling FinTech companies to display their solutions and platforms to interested Financial institutions. The Fintech Analysis Forum offers a bridge between financial firms and small IT companies with innovative solutions. This provides a platform for the chosen IT companies to promote their solutions and win business from the interested banks and card companies.
Financial Services Commission Chairman Yim Jong-yong, left, listens to a presentation by an employee of a Korean FinTech firm on its new services at Nine Tree Convention, central Seoul, on Wednesday. Provided by Financial Services Commission
Interpay booth, visited by FSC Chairman and celebrity ambassador Lim
TrustZone and Trustonic TEE based solutions enable cutting-edge high security technologies. These, to date, have been mostly used in B2B, with Shinhan card decision to use TZ OTP creates momentum for more use in B2C segment.