Jumio, the mobile payments firm whose backers include Facebook co-founder Eduardo Saverin (pictured), has announced a new service that lets users scan their credit cards with a smartphone camera as a means to authenticate one-click transactions.
The idea behind the new service, which is called Port, is to enable one-time verification of a user’s identity which can be then be used across multiple e-commerce partners. Jumio’s customers currently include Airbnb and Fab.
This is a similar concept to what other vendors such as Braintree are doing. The difference is that Jumio uses the phone’s camera for scanning and uploading a user’s payment information the first time, as opposed to manual entry via an app.
CEO and founder Daniel Mattes said Jumio is part of the payments infrastructure rather than a mobile wallet. In fact, users can save their payment information to Apple’s Passbook or the new Samsung Wallet.
But generally Mattes is a sceptic about wallets. “Most users have not found out they need one yet,” he said. The typical wallet is actually payments apps with a narrow functionality, he said.
In fact, Mattes points out that most successful wallets to date have been launched by retailers. Starbucks is a prime example. Retailers offer closed loop wallets, meaning users can make purchases only with that particular retailer. This means users need a new account each time. Consumers need a ubiquitous solution, argued Mattes. “I need a device-based wallet, not an apps-based wallet.”
Other investors include Andreessen Horowitz and Citi Ventures