SHELTON, CT--(Marketwired - Jan 7, 2014) - NXT-ID, Inc. (OTCQB: NXTD), a biometrics company focused on the growing mobile commerce market, revealed its "Checkout with Wocket™" initiative today which utilizes patent-pending dynamic pairing technology (DPT) to prevent credit card fraud. The initiative secures all payment card information before, during and after transactions without changing the existing current payment infrastructure.
"2013 was clearly the 'Year of Personal Data Breach.' Target capped off the year with over 40 million credit and debit card account numbers lost to hackers by malware at point of sale terminals," says David Tunnell, CTO of NXT-ID. "Our dynamic pairing technology is built upon the existing systems retailers use today, but with the Wocket™ smart wallet, we can provide a dynamic pairing number for any account, not just a single 'card.'"
NXT-ID believes the problem behind credit card fraud is not the security of the server housing the card numbers but rather, whether or not that data is useful to a hacker. The "Checkout with Wocket™" initiative is built upon the simple principle of making that data useless in the case of a data breach. With this technology, if someone gained access to a credit card number used with a Wocket™ smart wallet, it would not work if sold or used outside of the Wocket™ itself, rendering it completely useless to a hacker.
Various methods such as one-time-passcodes (OTP) and chip-and-pin cards have attempted to improve security in the payment industry. Unfortunately, these approaches were not universal across all payment accounts and methods, and are often very expensive for retailers to support, requiring costly changes to infrastructure for wide-scale adoption. NXT-ID solves this problem by utilizing the Wocket™ smart wallet to generate a dynamic account number that reveals no information about the actual account number, but is "dynamically paired" to a specific account number so that a transaction can take place without uprooting the retailer's existing infrastructure. Since the Wocket™ uses standard magnetic stripe technology on its reprogrammable card, no additional hardware at the retailer level is required.
Unlike previous methods that generate an OTP or PIN for a single card, NXT-ID's smart wallet is unique in that it can generate one or a number of pseudo-random dynamic pairing codes that are correlated and charged to a single valid credit card account. With the Wocket™, card issuers now have a solution to prevent fraud from skimming and data breaches saving millions of dollars each year in fraudulent activity.
Any card number that is intercepted after the charge is useless for performing theft or fraud.
"We are very excited to offer a solution to the payment industry that prevents the rampant loss of private information that is so prevalent in recent news," says Gino Pereira, CEO of NXT-ID. "Dynamic pairing technology gives retailers, banks and credit card companies the opportunity to offer their customers the ability to confidently release their personal information without fear of fraud and without having to modify the current payment process. This is a true innovation for the future of payments."
Dynamic pairing technology compliments NXT-ID's widely anticipated next generation payment and identity protection product -- the Wocket
About The Wocket™
The Wocket™ is a next generation designed to replace all the cards in your wallet without draining your cell phone's battery; no smart phone required. The Wocket works anywhere credit cards are accepted and only works with your biometric stamp of approval. http://thewocket.com/
About NXT- ID Inc. - Mobile Security for a Mobile World: NXT-ID Inc.'s (OTCQB: NXTD) innovative MobileBio™ solution mitigates consumer risks associated with mobile computing, m-commerce and smart OS-enabled devices. The company is focused on the growing m-commerce market, launching its innovative MobileBio™ suite of biometric solutions that secure consumers' mobile platforms. NXT-ID's wholly owned subsidiary, 3D-ID LLC, is engaged in biometric identification and has 22 licensed patents in the field of 3D facial recognition http://www.nxt-id.com/, http://3d-id.net/
Forward-Looking Statements for NXT-ID: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the successful execution of the Company's business strategy. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Such risks and uncertainties include, among other things, our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the availability of financing; the Company's ability to implement its long range business plan for various applications of its technology; the Company's ability to enter into agreements with any necessary marketing and/or distribution partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company's technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.