New Device Encrypts Online Transactions for Consumers
Aug. 10, 2015
A startup from San Mateo, Calif., has introduced a hardware-based solution for consumers that will encrypt payment information before it enters the user’s computer or mobile device. Pocket Systems said its PocketKey plugs into a computer’s USB port or into the headphone jack of a mobile device and replaces the standard 16-digit credit-card number with a one-time use 75-digit number. The device also will speed up online and mobile transactions, the company claims, because the user’s information will be filled automatically into checkout pages.
“Our goal is nothing less than the complete elimination of credit card fraud,” said David Marsyla, founder and CEO of Pocket Systems. “Consumers are anxious about online fraud. Many have already been victims and many more are subjected to excruciating ‘fraud detection’ ordeals. Banks and merchants are losing $10 billion annually to fraud, which is predicted to rise to $19 billion per year by 2018. Most people have accepted this as an unavoidable reality. But just imagine how much better off we would all be if we could shut the thieves down. Forever.”
The company said the payment data from PocketKey looks exactly like the data generated by a magnetic swipe card and can therefore “travel through payment gateways in precisely the same way.” Pocket Systems said it will offer free support to merchants that want to accept PocketKey payments and can choose payment types including one-time payments, card on file authorization, subscription payments, installment payments and partial payments.