IDology, an Atlanta provider of fraud-prevention and identity verification, has made an equity investment in the mobile identity authentication provider Payfone.
Financial terms of the investment in New York-based Payfone were not disclosed, although IDology described it as “significant.”
As a result of the investment, IDology has integrated Payfone's software into its ExpectID Mobile identity-verification product. Payfone's service allows banks to authenticate mobile banking customers with only a username and password.
“Our decision to invest in Payfone’s business stems from our commitment to … deliver personal, secure and frictionless access to products and services,” John Dancu, IDology's chief executive, said in a Tuesday news release.
IDology provides identity-verification and fraud-prevention software for the financial-services industry, used in opening new accounts and strengthening the authentication process upon enrollment.
ExpectID Mobile aims to lower the account security risk associated with mobile devices and improve the mobile commerce experience.
Payfone’s technology will allow IDology to secure carrier data and utilize it to monitor account activity that could indicate potential account takeover. It also can establish a second factor of authentication, by binding identity to a mobile device.
The binding identity is confirmed when a customer logs in; higher levels of verification are only incorporated when necessary, IDology said.