Swipe Your Webcam, Please
There was a lot of fanfare this last year when Twitter co-founder Jack Dorsey reduced his time at the popular micro-blogging service and became CEO of Square, a company that produces tiny credit card readers that plug into a smart device’s headphone jack. Business owners everywhere jumped for joy at the prospect of tossing their clunky credit card swiping machines, adding an app to their iPhone, iPad, or Android device, and plugging in Square. Transactions could be performed in person anywhere, anytime.
Square better watch out, because someone just turned all of our webcams into potential credit card readers.
Yesterday, Jumio CEO Daniel Mattes sent out a press release, inviting everyone to learn about their new product, NetSwipe, calling it “the most advanced and secure payment solution” for online businesses.
"Jumio bridges the gap between the security and trust of credit card payments at the point of sale and the availability and convenience of modern day online transactions," said Mattes in the press release.
The way Jumio works, is a transaction is performed in a typical manner online, adding items to your shopping cart. When you are ready to purchase, rather than typing in your credit card info or using PayPal, you can choose a participating company’s Netswipe option, which will launch your webcam. Simply hold your credit card in front of the camera until Netswipe captures its information. If asked, typed in your security code from the card’s back, and click to complete the transaction.
According to Jumio, when your Netswipe-based transaction is complete, your camera is automatically turned off, and your card and transaction information is discarded by their payment system.
In a study performed by Jumio, the churn rate (loss of a customer who is frustrated with errors in ordering or paying online) of online payment transactions performed without their technology is more than half, while payments using their webcam-based transaction system dropped to 21%. With over 2 minutes saved per transaction, those studies said overwhelmingly that they would prefer to see Netswipe used over having to keying their credit card information manually.Continued on the next page