US blockchain-identity verification company ShoCard, and one of the major ATM providers in Saudi Arabia, Alhamrani Universal, have teamed up to create blockchain-based authentication methods to improve security when using cash machines.
The idea behind this collaboration is to provide Alhamrani customers with the opportunity to verify their identity through biometric information and a blockchain-based mobile app. According to ShoCard’s founder and CEO Armin Ebrahimi:
“The ShoCard solution will solve the issue of card fraud at ATMs that continues to plague banks and consumers.”
What ShoCard and Alhamrani bring to the table is a new level of security, guaranteed by the advanced technology blockchain offers. The new payment verification system will operate, based on a five-step process. This process involves a specific ShoCard ID, a QR code issued by the mobile app, timestamp verification and photo recognition along with numerous other certifications.
Safety with Access
This rigid verification process will allow customers to safely withdraw funds from Alhamrani ATM machines, regardless of the issuer of their account. Thanks to the blockchain technology integrated into the process, the ATM machine gains access to all necessary information about the issuer bank and the customer, thus verifying their identity and confirming that the requested funds are available. This whole process happens without the need to type in a PIN code. The combined use of decentralized ledgers and biometric information provides for an additional level of security.
Why Saudi Arabia?
Card fraud and card payment schemes are a significant problem in Saudi Arabia, so ShoCard and Alhamrani are looking for a solution. The necessity for a change in the card security sector is so severe that the Saudi Arabian government has introduced a yearly awareness campaign, which aims to educate customers so that they can prevent fraud themselves. According to Arab News, card payment schemes are one of the most common types of fraudulent activity in the country.
The increased level of fraud involving cards and personal banking information have pushed ShoCard and Alhamrani to think of a better verification method. ShoCard has been in close cooperation with Ateon, a subsidiary of Alhamrani, ever since 2017.
Ateon is a company focused primarily on developing Blockchain solutions for the whole Saudi Arabian region. Their blockchain management systems are utilised in a wide variety of sectors, including banking. Atos have also developed travel ticketing systems, loyalty programs and micropayment functionalities all based on blockchain technology.
ShoCard, Atos and Bank Aljazira have worked together to implement a blockchain identity management platform for the bank, which aims to increase the security around customers’ personal information.
Blockchain technology is introducing a revolution in numerous sectors of finance and business, and ShoCard is betting on this innovation. Their extensive experience in the utilisation of decentralised ledgers and blockchain verification systems have made them the leader in the industry. According to Mr Ebrahimi, who worked for Yahoo before establishing ShoCard, one of the main goals for the company is to create a link between established practices and technological advancements, to provide better financial products globally.