SecureKey turns PCs into contactless terminals

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SecureKey Technologies has created a method to transform any computer into a contactless payment terminal.

The contactless acceptance device plugs into a computer and sets up a secure channel to an issuer, enabling consumers to make transactions by tapping their contactless cards against the device. Each contactless payment made employs a one-time-use, transaction-specific code at the POS – writes Daniel Wolfe.

The code is generated sequentially, so that if a fraudster steals a block of codes by scanning a consumer’s card, those earlier codes would be rendered worthless by the next one generated by the consumer at the POS.

Online retailers are not enabled to accept these codes, so SecureKey transmits this data directly to the issuer at the start of the purchase, and the issuer then produces a one-time-use code that would be automatically filled in at the retailer’s site in place of other payment data to tie the e-commerce transaction to the dynamic data sent earlier.

SecureKey’s Chris Gardner says consumers who do not like filling in payment data online are migrating to alternative systems, and SecureKey offers a way for banks to win back those customers. Gartner analyst Avivah Litan says the SecureKey solution greatly strengthens the business case for contactless payments. “Up until now … [contactless] was like a partial solution,” Litan says. “One of the barriers is that it doesn’t work on e-commerce channels