The Series B round for Witherspoon’s Draper James brand was led by San Francisco-based Forerunner Ventures.
Banking giant JPMorgan Chase has announced an online wallet, a “Quick Checkout” payment application and a new token-based system of securing online payment data. It’s also coming out with chip-and-pin credit cards.
JPMorgan Chase & Co. wants to race ahead in the competition to be the fastest and safest in the world of online payment transactions.
The bank introduced this week new online security services along with Chase Wallet, for storing and accessing multiple credit card accounts online, and previewed Quick Checkout, which it says will speed up checkout on mobile devices as well as desktop e-commerce sites.
The Chase Wallet service lets online shoppers make payments with any brand of payment card they choose to store in it, Chase says. But for Chase-branded cards, when a customer replaces a lost, stolen or expired card, the bank automatically updates the account numbers in her wallet.
Quick Checkout, which will become available in the near future on Chase’s new ChaseNet payment platform, was designed to automatically fill in a shopper’s shipping addresses on e-commerce sites, helping to cut online and mobile checkout times to about 30 seconds from an industry average of two minutes, Chase says.
The new services announced this week also include a tokenization system for payments security. With that, Chase uses data “tokens,” or encrypted code that represents a consumer’s credit card account number, in payment processing, rather than using the actual number. That protects customer account data because even if a hacker obtained the token he would not be able to convert it back into a usable credit card number.
In addition, Chase says it plans to release sometime this year EMV chip-and-pin credit cards, which are designed to increase payment security by requiring card holders to enter a personal identification number that gets verified by a computer chip in her payment card. EMV stands for Europay, MasterCard, Visa, the three payment card companies that launched the EMV chip-and-pin technology in the 1990s.
Although European banks adopted chip cards a decade ago, U.S. banks and retailers have been reluctant to take on the expense of moving their cards, payment terminals and processing systems away from magnetic stripe technology. However, there is more pressure now to move to EMV following security breaches earlier this year at Target Corp. and other retailers. In those cases, criminals inserted software that stole credit and debit card numbers from store point-of-sale terminals. With EMV, the data transmitted between card and terminal is encrypted so that it would be of no use to anyone who steals it.
Chase announced its new payment and security products and services this week at its annual Investor Day presentation in New York.