Canadian security company Cryptocard is to launch a combined payment card and one-time-password generator to secure online banking log-in and protect against card-not-present fraud.
The company, which lists Apacs, ING, Fortis, and TD Bank among its customers, says the EMV-ready CD-1 Credit Card Display token is currently being piloted at a number of multinational financial institutions.
News of the launch comes within weeks of an announcement by Visa that it is to pilot a similar combi-card authentication solution at MBNA in the UK, Cornèr Bank in Switzerland, Cal in Israel and IW Bank in Italy.
The Visa PIN card was developed using technology from Australia-based Emue Technologies and features an alpha-numeric display and a 12-button keypad built into the back of a conventional credit, debit or prepaid card.
Rik Turner, senior financial services analyst for Datamonitor, adds; "Banks recognise the desirability of two-factor authentication and some have extended it to retail customers by issuing dedicated one-time password (OTP) generators to use in association with a PIN number. The downside of that approach, however, is that it means one more device to carry with you. There is clearly market opportunity for something that delivers OTP functionality, along with the features of another device such as a payment or building access card, and in a convenient form factor."
Cryptocard says it CD-1 device and back-end software management system will be generally available from 1 January 2009.