“The combined Bluefin/PAAY solution set is as close as we can get to a silver bullet in payment security for eCommerce transactions,” Ruston Miles, co-founder and chief strategy officer at Bluefin, said in a statement on Tuesday (Nov. 10).
“PAAY provides strong authentication at the front door and Bluefin encrypts and tokenizes the data at the point of interaction on the web. Most online merchants rely solely on SSL/TLS to encrypt the data being sent from their websites. This leaves payment data vulnerable while inside the web page before it is transmitted. Hackers have exposed this vulnerability extensively over the years,” Miles added.
Founded in 2007 by Miles and John Perry, who serves as chief executive officer, Bluefin specializes in encryption and tokenization payment and data security.
New York-headquartered PAAY, a consumer authentication innovator co-founded in 2011 by James Ruffer and Yitz Mendlowitz, has a new security solution that aims to obliterate hacking and fraud threats.
PAAY’s latest utility set “combines 3DS, hardware-based encryption, and vaultless tokenization to provide merchants a liability shift, strong customer authentication, data confidentiality, and compliance with the General Data Protection Regulation (GDPR) and the Payment Services Directive 2 (PSD2),” according to the statement.
The partnership aims to eliminate large-scale breaches, which are accelerating in intensity and frequency in 2020, especially amid the COVID-19 pandemic. Cyberattacks have jumped 273 percent in the first quarter of this year over the same period in 2019.
Further, online sellers have been tackling chargeback fraud, which could account for about 86 percent of all chargebacks. Each $1 of fraud costs retailers $3.13.
The new solution also helps shield merchants from fines related to GDPR and the California Consumer Privacy Act (CCPA) noncompliance.
“Violation of these Regulations and Acts, carry enormous penalties, ranging up to 4% of the business’ annual global revenue or $20 million Euro,” said Adam Gluck, chief technology officer, PAAY. “There have been companies fined upwards of $250M under GDPR and merchants need a solution to conduct business in this environment.”
In an August PYMNTS interview, PAAY’s Mendlowitz said COVID-19 propelled all merchants to pursue a digital-first strategy to survive, which was not typically the case.
Getting the European Union on the path to 3D Secure 2.0 (also known as 3DS 2.0 or EMV 3DS) has not been smooth, however, accelerated eCommerce demand spurred the pandemic, has gotten the technology paradigm off the ground.
An October credit card frictions report by PAAY and PYMNTS indicates that among the most typical reasons for a card decline is due to verification issues like legitimacy or credit limits.