[IMGCAP(1)]

PARIS—Payment cards that generate one-time passcodes to boost consumer security could gain traction over the next year in South America and South Korea, Dennis Brestovansky, president and CEO of U.S.-based Aveso Inc., told CardLine Global this week here at the Cartes & Identification trade show. The company makes modules that generate and display passcodes consumers enter at Web sites when prompted for additional verification, typically for online-banking transactions. Cards that display one-time passcodes—governed by algorithms unique to each cardholder and stored in financial institutions' central servers—usually are the same size as traditional payment cards. The cards can include chips or magnetic stripes and be used to withdraw money from ATMs without damaging the technology, Brestovansky said. Card vendors such as Germany-based Giesecke & Devrient are buying the modules for their cards. Though Brestovansky says Aveso so far has shipped only a relatively small number of the modules, he expects fraud laws in South America that generally hold consumers liable for more losses than do those in the United States, along with regulations mandating security for large online-banking transactions in South Korea, to spark demand. At least one South Korean bank last year ordered some 12,000 one-time password cards from U.S.-based Innovative Card Technologies for online-banking authentication (CardLine Global, 14 Jan.)


Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry