Biometric authentication market consolidates: Prove reaches UnifyID deal, Signicat acquires Encap
Prove has unveiled intentions to acquire UnifyID as part of its plans to enable customers benefit from award-winning behavioral biometric authentication services capable of fighting fraud while approving legitimate transactions.
In an announcement, Prove said in addition to addressing cases of risk and fraud, UnifyID’s technology can authenticate a user with a 1:1 biometric match using their behavior and movement.
UnifyID launched its behavioral biometric authentication capability for mobile devices based on gait recognition last year. The company is backed by Andreeson Horowitz and Stanford University’s StartX, among other leading investors.
Integrating the solution means that Prove’s customers will be able to evolve current two-factor and multi-factor authentication strategies; reduce reliance on one-time passcodes or passwords; enable passwordless login experiences; enhance contact center and chat interactions; thwart promotions fraud and comply with the European Union’s PSD2 and SCA mandates.
The acquisition which will be completed early this month is expected to boost Prove’s global technology and e-commerce growth, and will allow the company’s customers including nine of the top 10 U.S. issuing banks to choose from modern authentication techniques such as enhanced push authentication with private and secure location intelligence as well as passive, dynamic mobile behavioral biometrics based on people’s unique postures and motion signatures, the announcement explains.
Rodger Desai, CEO of Prove, said the acquisition move is in response to some of their customer urging them to help cut down their reliance on one-time passwords and adding advanced authenticators. “UnifyID’s technology harnesses powerful behavioral and biometric signals from mobile phones which, coupled with Prove’s solutions, can enable a frictionless authentication experience that is simultaneously secure and convenient. Businesses don’t need to compromise between the two anymore,” said Desai.
Prove’s Chief Strategy Officer Michael Lynch added: “High friction, low security authentication techniques like SMS OTPs will make way for secure, frictionless behavior-based and push-based authentication techniques. UnifyID will enable Prove’s customers to be industry leaders that provide their end consumers secure, best-in-class user experiences.”
To John Whaley, Founder and CEO of UnifyID, the takeover means Prove will become one of the most complete mobile ID solutions available. “Our cutting-edge technology has won top accolades from TechCrunch Disrupt, RSA Innovation Sandbox, Forbes AI 50, and others. By combining our expertise in passive authentication, behavioral biometrics, and machine learning with Prove’s established mobile identity solutions, Prove will become the most complete mobile identity solution in the market,” he stated.
Forest Baskett, General Partner at NEA, praised UnifyID for building a “groundbreaking technology that has generated immense interest,” saying “Prove’s strong market presence and large enterprise customer base will help rapidly scale these products.”
Signicat acquires Encap Security to enhance biometric authentication
Signicat has acquired strong customer authentication (SCA) specialist Encap Security to combine its digital identity, biometric onboarding and digital signing expertise with Encap’s capabilities for convenient and user-friendly authentication, Finextra reports.
With the acquisition, Signicat offers a complete suite of technologies for regulated businesses to verify, onboard and authenticate customers across the complete customer lifecycle.
Encap’s SCA platform is used by clients across Europe, particularly within financial services, for mobile authentication.
Asger Hattel, CEO of Signicat, says the acquisition gives his company the backbone to its mobile digital identity strategy, and establishes it as a powerhouse in mobile identity and authentication.
The terms of the deal were not disclosed.
Signicat and Encap have a “long term” established partnership, according to a LinkedIn post noting the selection of MobileID biometric authentication by peer-to-peer lender Fellow Finance a month ago.