Technological advances over the past decade have enabled the creation of mobile devices and made the internet more accessible and more convenient. Accordingly, consumers can acquire their needed products and services with just a few clicks.
But while eCommerce platform usage has been on the rise in recent years, the use of online shopping platforms spiked when the pandemic broke out in 2020. People shifted from in-person visits to digital transactions to purchase goods and services while avoiding the potential risks of contracting the novel coronavirus.
Apart from accessing eCommerce platforms, many consumers also utilized digital wallets for contactless payments. A digital wallet or e-wallet is a software program that stores digital versions of a user’s credit or debit card information and conveniently allows the user to make online or contactless in-store payments.
Mobile digital wallets fall into two categories: open and closed digital wallets. Essentially, closed digital wallets are the ones that are linked exclusively to a specific merchant. Meanwhile, open mobile digital wallets are e-wallets built on a central platform and can be used for transactions with any merchant, given that the merchant has a compatible point of sale (POS) system.
Given the sensitive information stored in digital wallets and the fraud risks online merchants face, enterprises must employ the most robust security and authentication methods in their networks. Consequently, FIDO 2.0 authentication is the top of the line when it comes to stronger security and authentication.
Aside from offering strong biometric authentication, FIDO2 authentication solutions can also be applied to payment authentication. Companies with FIDO certification like LoginID have digital signature API tools that are perfect for crypto digital wallets as each transaction is cryptographically signed and hashed on the blockchain. Hence, fraudsters will not be able to transfer crypto out of a user’s digital wallet unless they have the accountholder’s digital signature biometric.
Here is an infographic from LoginID details how strong customer authentication can help enterprises secure, private authentication for the future.