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Physical Cards Drive Passwordless Future

Adam Lowe, chief product and innovation officer at metal premium card issuer CompoSecure, whose digital security platform Arculus streamlines digital authentication processes and secures digital assets while talking to the media, said that the traditional physical card can become a hands-free conduit for seamless trading.

Physical Cards Drive Passwordless Future

Currently, the security issue is one of the most sensitive for large and small companies, including those firms that operate in the financial technology industry. The corresponding problem becomes more relevant against the backdrop of technological development. In this context, we should mention the rapidly evolving artificial intelligence, which fraudsters have access to. The use of AI makes the activities of cybercriminals more sophisticated and difficult to detect unauthorized moves. In the context of this problem, digital literacy is of particular importance. For example, a query in an Internet search engine such as how to know if my camera is hacked will allow anyone to obtain information about signs of unauthorized access to a device. Digital literacy is an effective, but not the only tool to combat cybercrime. In this case, comprehensive technological solutions are needed from companies and organizations that ensure the protection of client’s data and the actions they take in the virtual space. Efforts are already underway, but cybercrime continues to be a very sensitive issue with concrete practical consequences in the form of financial losses and damages associated with digital compromise practices. For clients of fintech companies, banks, and other organizations operating in the virtual space, security in the online dimension of reality is something that falls into the category of priority values ​​and needs.

The problem of cybercrime is something that forces the heads of information services and security services of large and small companies to undertake new efforts and expand new resources. In this case, it means activities aimed at ensuring the protection of functional systems and users interacting with the corresponding systems from any attacks by those who engage in what can be described as online theft and virtual robberies. Combating fraud is somewhat of a must-do task gnoring which is objectively impossible. At the same time, companies need to ensure that payment transactions made through their functional systems are not associated with any significant difficulties that unduly complicate the process.

Adam Lowe, while speaking with media representatives, said that firms operating in the fintech industry, merchants, and banks need new levels of trust and authentication. In this context, he also noted that the physical card in the future could become a vehicle for a hands-free conduit to seamless commerce.

Passkeys, categorized as Tap to Authenticate and used by CompoSecure, mean that the cards themselves become a way for consumers to authenticate. Adam Lowe says that in this case, the ability to apply a payment form factor is being formed, which is available to millions of users. At the same time, appropriate practices can include digital features that focus on keeping people safe and secure in their daily financial lives.

Сhief product and innovation officer at CompoSecure, says that at a high level passkey technology exists, essentially, as a digital key that unlocks an event. This refers to the practice of having the holder sign a virtual message from which the public key can be extracted. The corresponding procedure confirms the authenticity of the identity. This ownership practice ensures that the user is who they say they are and not an extraneous person who has illegally gained access to someone else’s digital tools.

Adam Lowe says that passkeys are often housed in a connected device. In this case, it means a mobile device that is characterized as hot, which means it is connected to the Internet. According to Adam Lowe, passkeys are often synchronized with the cloud. He also stated that hardware-bound passkeys still function in the ways that cloud-based keys do, but are burnt into hardware that’s offline. According to him, the keys built into cards issued by CompoSecure and underpinned by Arculus are stored securely in users’ pockets and are not synchronized with the cloud, where there is a potential risk of hacking.

Adam Lowe says that hardware-based passkeys in the mix will ensure that preventing account takeovers will be part of a significantly better customer experience and reduce fraud. He also noted that providing new devices will keep the security of the ecosystem.

Adam Lowe stated that the broader stage is set for the adoption of passkeys. In this context, he noted that technology giants such as Meta, Apple, and Microsoft actively support the use of passkeys as a means of accessing accounts. Also, the governments of many countries are currently showing interest in this practice.

Adam Lowe says that burning those passkeys into the cards was an initiative based on the principle of a startup, which identifies a need and then implements activities aimed at satisfying it. According to him, at present, executives of companies operating in the financial services industry are not very aware of the passkeys built into physical cards. At the same time, the cards themselves address the challenges of balancing between friction, authentication, and customer experience.

Mr. Lowe underlined that chief financial officers and other executives are well aware of account takeovers and fraud. According to him, the mentioned persons realize the need to counter the specified threats. Adam Lowe says that to achieve the right balance, CFOs and other executives need to enlist the aid of CompoSecure.

Moreover, Mr. Lowe said that the cards are part of a larger ecosystem. In this context, he noted that his company can ensure uninterrupted operation of the card, regardless of which interface the consumer uses. The client can work on a laptop, desktop computer, or smartphone.

Adam Lowe says that with one tap and secure transactions, there’s also zero trust architecture. He also noted that with the combination of security and seamlessness, sales conversations often involve a broad array of stakeholders, from business owners to bankers, and chief information security officers.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.