Croatia at the forefront of online transactions

Croatia's Privredna Banka Zagreb (PBZ) claims to be the first implementer of MasterCard's CAP (chip authentication program) technology in South-eastern Europe.

Under CAP, users of MasterCards are required to enter an online or telephone one-time PIN, which is generated using a sleeve reader into which the bank's MasterCard is inserted.

The two-factor authentication technology, which has been trialled by Barclays and a number of other banks in the UK, but never extended to all users, is also being used in the Czech Republic and other former central European countries.

But not in the UK -Ed.

PBZ says it expects to have over 40,000 retail merchants using CAP authentication by the end of the year, a figure it expects to increase as new merchants signing with the bank will only be allowed to use CAP authentication from now on.

According to nCipher, which is supplying the encryption systems for the CAP technology, two-factor authentication is rapidly becoming the de-facto standard for e-banking services in Croatia and is now being extended to online and phone-based transactions.

What's interesting about this authentication deployment is that CAP is billed as a natural extension to an EMV chip infrastructure and can turn a card-not-present transaction into a card-present one. Using this approach to security, the bank says, greatly reduces the cost of fraud and risks associated with mail order purchases.

Are you listening APACS?...