Digatrade’s website has an investor services page featuring investor-focused information, www.DigatradeFinancialInvestor.com.
The information there includes a frequently updated official blog providing Digatrade background information in plain language to supplement SEC filings. Such a blog is easily understood and concentrates on specifics that are relevant to shareholder interests. The purpose of the blog is to impart genuine understanding to our shareholders, present and future, of DIGAF activities, and the reasons for them.
Today’s topic is a brief overview of the technology of Digatrade’s Securter Systems subsidiary – and why/how DIGAF shareholders can benefit from its introduction.
In the most basic terms, Securter’s technology is designed to reduce fraudulent online credit card use. There are thousands of digital payments per second globally now. This is projected to grow immensely. The payments industry is engaged in a never-ending cat-and-mouse chase to root out misuse of credit card information by hackers and criminal elements. Losses are in the billions every year. Unfortunately for the industry, the problem is still worsening because of the sheer scale, speed and diversity of transactions occurring. Furthermore, the number of high-dollar-value credit card transaction sizes has grown over the years as credit cards become increasingly popular for large ticket items, internationally. Additionally, the range of cardholder types is increasing, including a greater diversity of ages, lifestyles, geographic locations, number of cards operated per person and business uses. For these reasons, and more, it is difficult for credit card companies to balance the desire to provide convenience to cardholders and merchants on the one hand, with unintrusive authorization algorithms on the other. In other words, legitimate consumers are intensely annoyed by declined payments, but are equally annoyed by fraudulent card use of their card information by others. This puts the payments authorization process into a constant dilemma weighing these factors, in hundreds of billions of digital payment authorizations annually. Digatrade/Securter is part of the solution.
Securter’s patent-pending technology can be thought of as a series of concentric circles, with a bull’s eye in the middle, as ground zero. Then, expanding outward, there are aspects of Securter technology that become further removed from the original core purpose, but are still relevant, eventually expanding into integration of cryptocurrency functionality, and other elements. This discussion centers on the original core premise in the bull’s eye of Securter technology.
At its starting point, Securter makes it unnecessary for consumers to to give their personal information or credit card details to online vendors for card-not-present online transactions (“CNP”). Despite this convenience, Securter transactions are as safe, or more so, than in-store authorized purchases made by the card owner with pin number. In other words, Securter is a technology-based technique, consisting of a combination of hardware and software integration, that utilizes the general principal of multi-factor authentication (MFA), using a combination of information from different independent and reliable sources (for example “something you have” and “something you know”) to authorize the transaction. As Securter’s Vice-President of Research and Development, Andrei Grenader, puts it, “Securter utilizes the strongest type of security authentication based on EMV Cryptogram, that uses bi-directional verification and smart token generation, compared to one-time tokens (hardware security tokens) that also can be generated by EMV protocol, but with significant security and practical disadvantages.” The bottom line is that it helps give individuals or businesses who buy things online significantly enhanced privacy of personal data, including privacy even of credit card number, to meet or exceed the in-store purchase safety. The Securter system user enjoys this convenience wherever they are, including when travelling. This can greatly reduce losses experienced by all parties that arise from fraudulent “card-not-present” transactions. The opportunity for data theft and abuse is greatly reduced, because the disclosure to merchants and some other parties of credit card details (and other personal information), is eliminated in the Securter system. Even 3rd party payment portals currently store such information, however this would be made unnecessary with Securter.
The research leading to Securter’s patent pending priority rights takes into account the “prior art”. Our team has been careful to know what was “out there” in the industry already, prior to the application being filed.
Our innovations in this particular core activity establish new qualities in the areas of:
- Methods for managing smart card transactions consisting of one or more communication interfaces for connecting to processors of vendors, customers and payment server processors (whether or not they are configured to perform smart card reader terminal tasks);
- Encryption and decryption techniques for the confirmation that is transmitted to the vendor processor and the customer processor;
- Communications channels;
- How to not store private information required for verification of smart cards;
- How to select a Payment Service Provider from all available PSPs to convey details of the transaction and the cryptogram, for each transaction;
- How to be responsive to an estimated charge for carrying out the transaction;
- How to deal with varying response times of applicable PSPs;
- Smart card reader and interface design;
- Methods to store information (memory) of authentication codes;
- How to refuse to operate with transaction details that are non-compliant;
- How to combine differing hardware configurations seamlessly to the user experience;
- How to share relevant data safely amongst multiple stakeholders only in accordance with their needs.
The business opportunity for DIGAF shareholders in this premise is two-fold. Not only can these security benefits generate fee sharing with payment service providers in the world’s payments system, but it also creates a Digatrade fintech branding opportunity. Securter will be visible to consumers, because it will be identified as the protocol being used. Industry experts have said: “…. issuers and networks must ensure brand acceptance across the key digital environments (e-commerce, in-app, “tap & pay” at the POS), particularly for bank wallets…” (McKinsey 2018).
This means that Digatrade (DIGAF) will not be a “quietly in the background” technology company. Digatrade will be known for its fintech brands, of which Securter is the launch position. The points above describe where our innovation is already relevant enough that we can realistically discuss affiliate partnership agreements with payment service providers.
There is additional technology and business strategy planning at Digatrade. This will be discussed at the Digatrade Investor Blog soon.