Facebook co-founder Eduardo Saverin has a new trick up his sleeve: Offering one-click digital payments for Passbook and Samsung Wallet. Saverin-backed startup Jumio, which originally “swiped” credit cards via webcam, is now offering verification algorithms, toolkits, and platforms for retailers that validate both credit cards and drivers licenses, regardless of platform.
Jumio's product, in effect, allows retailers to sharply cut credit card fraud via ereaders. The new announcement, called Jumio PORT, also has a secret asset for operators: It verifies the age of consumers, saving significant time for stores that stock alcohol and cigarettes. In a presentation, Jumio CEO Daniel Mattes emphasized that photographs of credit cards and passports taken with smartphones make use of sensors and spectrum analysis capabilities that many retailers lack.
The announcement was made at Money 2020, an annual conference in Las Vegas centered on electronic payments, financial service integration, and all things vital to a cashless society. Saverin, who serves on Jumio's board of directors, emphasized the changing nature of the Internet and the need for verification on digital services. “The Internet started anonymously with Tim Berners-Lee 25 years ago, but things have changed. It's gone from anonymity to a known web, which is why we need (verification) services like Jumio.
Instead of offering a standalone product to retailers or consumers, Jumio is attempting to have their product integrated into retailers' websites and apps, where they would then work across the board with one-click or in-person ordering. A credit card recorded by the app of one Jumio vendor for an ecommerce purchase will be usable by a customer handing their smartphone to a cashier in another Jumio vendor's brick-and-mortar store.
Mattes added that “Consumers want one wallet that allows transactions in both the digital and real world. Jumio is a device-based wallet; we don't see ourselves as a provider... We're infrastructure. Typing is the old way. Cameras are ubiquitous, and by using cameras alone (for identification and payment capturing) you increase transaction completion rate 300-500 percent.”
In a product demonstration, Mattes (an Austrian native) ordered leberkase through an app, and then scanned in a credit card and typed a CVC number in to a phone that was already registered to him. The transaction went through with one click, and the card was again usable at another, unrelated retail store's ecommerce app. The recurring theme was associating devices with payment and personal credentials, and Jumio's desire to turn a profit by being the backend company that app makers rely on to conduct verification and identification.
While Jumio isn't the only company seeking to turn a profit by engaging in nuts-and-bolts of ecommerce, they're certainly one of the best funded. Last year, Andreessen Horowitz invested $25.5 million in the company.
Correction: An earlier version of this article misidentified Passbook as Facebook Passbook and mistakenly said that Jumio records the age of purchasers giving identification.