Mobile Commerce Insider Featured Article

April 01, 2015

Zumigo Launches Assure Payments for Location-Based Verification

The smartphones we use today are disrupting a lot of different industries in one little device. Whether it is healthcare, finance, entertainment or communications, we are now able to access these and other services at our fingertips. As more solutions get integrated into mobile technology, the security threat has increasingly become a major sticking point for companies delivering services on this platform. This is especially true for payment solutions, which is why the launch of the new Zumigo merchant payment validation service will be welcomed with great anticipation.

According to Zumigo, provider of mobile device location and identity verification, its new Assure Payments functionality is the industry’s first location-based merchant validation service designed to prevent credit card fraud during online purchases.

The new solution gives merchants the ability to secure e-commerce transactions and validate the credit card information of consumers based on the real-time location of the customer’s mobile phone. Basically the technology is making sure the credit card owner is with him or her when they conduct a transaction. The premise being, if it is not with them there is a high degree of probability that the card is stolen.

The cloud-based service has an easy to use API integrations which lets merchants add the platform to existing shopping carts for deployments on traditional websites, mobile web or mobile app. For e-commerce merchants that rely on online card transactions, this will be a very important tool, because they incur the full brunt of the loss when they ship merchandise purchased with stolen cards.

“Since merchants own the risk of online purchases, Zumigo now offers a new way for them to mitigate that risk and prevent payments fraud and e-Commerce losses,” said Zumigo Founder and CEO Chirag Bakshi. “Consumers will opt for convenience over security if the security is too complex, and with Zumigo users don't need to alter how they conduct online purchases.”

Zumigo verifies the information that is supplied by consumers so merchants can lower or even prevent unauthorized purchases before they take place. This includes:

  • Purchaser's identity against mobile billing records delivered through Zumigo's partnership with mobile operators and Equifax.
  • Matching the credit card ownership details against the owner of the mobile device identified to the shopping cart.
  • Identifying in real-time the location of the mobile phone to be compared against the IP address, as well as the shipping and billing address of the purchaser.

By matching these data points, merchants can be relatively sure the card that is being used to purchase their product is the owner’s. If the information doesn’t match up, the transaction can be scrutinized by requesting additional information before it is authorized or denied.




Edited by Dominick Sorrentino




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