European Authentication Startups Net Millions in New Funding
Oct. 22, 2015
The investment community continues to back global companies trying to solve authentication issues plaguing card-not-present payments. Last week, two European startups landed significant investments that will help bring different verification solutions to market.
Veridu, a London-based company, raised $1.2 million to continue development of its “global identity platform”—technology that leverages new techniques like verifying a consumer’s online social footprint along with traditional measures like knowledge-based authentication, device identity and even background checks to establish identity and help businesses reduce fraud.
“We’re currently in the process of integrating our technology with several [big clients],” said Rasmus Groth, CEO of Veridu. “Right now we’ll spend part of the money on adding data scientists and statisticians to our organization that can further improve the accuracy of our algorithms. In addition, we’re hiring a team that is solely concerned with our major clients and partners. Finally, we’ll develop a self-service solution that makes it easy for any digital store owner and marketplace in the world to make use of our technology.”
Separately, a Norwegian company called Zwipe netted $5 million in new funding from Photon Future, Ltd, a subsidiary of Chinese investment firm Kuang-Chi Group. Zwipe last year introduced what it calls the world’s first fingerprint-authenticated payment card. Zwipe is banking on the fact that biometric authentication measures will replace PINs, passwords and signatures both online and at the point of sale.
By housing fingerprint authentication technology within a card, it will combine the simplicity and security of biometrics with a form factor with which consumers already have a great deal of comfort.