Windows CardSpace enables users to provide their digital identities in a familiar, secure and easy way. In the physical world we use business cards, credit cards and membership cards. Online with CardSpace we use a variety of virtual cards to identify ourselves, each retrieving data from an identity provider. CardSpace is specifically hardened against tampering and spoofing to protect the end user’s digital identities and maintain end user control.
Windows CardSpace formerly known as “InfoCard” utilizes Microsoft’s latest .Net Framework version 3.0 formerly known as “WinFx” providing a secure user experience required by identity web-services and specifically enabling ecommerce internet based ePayments.
In fact Microsoft is well positioned to engage the mega-market on-line economy by investing in CardSpace and by developing an ISV partner ecosystem by working with Venture Capitalists investing huge capital in Financial Services ePayment space. One key indication of this emerging trend is explained by our Emerging Business Team’s Financial Services Banking Portfolio analytic Trends & Observations Report. Figures indicating an upward trend of 9 ePayment venture backed IVS’s totaling $34M in Q405+Q1 2006. A 22% increase ove prior quarters investments.
“Indications clearly point to huge growth potential in the payment processing space, especially alternative payments such as PayPal.” Anonymous Analyst quote.
Other indications competitors and partners are giving this special attention is Google’s entry in the market with “Google pay” that has the potential to become popular pretty quickly. Though experts and industry analysts are not convinced yet – Microsoft is acting quickly to establish itself and partners as a serious player in this growth oriented market.
Speaking with Microsoft’s US Financial Services Industry Unit Lead Warren Lewis and Christopher McLendon US Retail Industry Unit Specialist – ePayment success will depend on reach, pricing, and strategic partnerships with online banker and retailers.
From an emerging trend to a growing number of traditional retailers have jumped on the internet bandwagon as to not lose sales to their virtual competitors. Traditional legacy payment platforms such as credit cards and bank transfers which currently control 90% of consumer transactions today will become increasingly threatened by new ePayment solutions offered by Microsoft back-end e-payment infrastructure partners like IP Commerce. These solutions offer a compelling proposition of ease of use, loyalty programs, security and ultimately low transaction charges.
Security is a crucial factor when consumers consider ePayments and demand multiform factor identification capabilities – no longer is just a “pin” secure enough for consumer confidence. Emerging trends point combining Identity, Authorization and Device address validation as the ideal situation.
Identity can be further enhances thru new software platforms like Microsoft CardSpace, in addition to edge devices that can detect bio feedback (i.e. fingerprint, renal scan, bio-pulse etc) in combination with traditional account numbers and pins.
Authorization will also change the way we use ePayments, most transactions under $25 near future will no longer require a signature. RFID or Bluetooth signals will enable and complete “touch-less” transaction (i.e. EzPass for tolls, airport parking, and fast food restaurants on New Jersey Interstate parkway).
Device identifications are a bit further out leveraging IPV6 as the key to identifying every IP server and edge device uniquely. This does not prevent spoofing entirely, however does give the customer and merchant or bank a higher degree of confidence within non-repudiation or transaction settlement.
For additional information on what Micorsoft is doing and it’s partners please leave a trackback on this blog or check out ePayment Industry Architect Moin Moinuddin ePayment Blog at https:/blogs.msdn.com/mmoin.