Intel’s new security service makes electronic payments safer

Intel claims to have developed a new hardware-software bundle that will make electronic payment transactions more secure for retailers.

The new system, called Data Protection Technology for Transactions, has been designed to protect credit card and personal data from hackers at the moment transactions are authorised.

Read more: Over a quarter of online transactions abandoned at checkout due to payment issues

The technology is adaptable to multiple systems and will be marketed to point-of-sale platforms, PCs and mobile payment terminals. NCR, the largest manufacturer of payment terminals, has already agreed to adopt the security service.

The data protection works by using multiple layers of security to minimise the risk of interception. The POS terminal first encrypts the data, which is then sent through a private tunnel to the credit-card processing company and then forwarded to the bank authorising the transaction.

Bradley Corrion, platform solutions architect at Intel, believes that with electronic payments becoming increasingly common, retailers need to be equipped to protect their customers.

"We need to make sure retailers have the tools they need to collect data from the end point and hold on to it securely," he said.

Intel's system is compatible with NFC transactions, meaning it brings an added level of security to services like Google Wallet and Apple Pay.

Greg Buzek, president of market research firm IHL group, added that the fact that the technology only accepts payments from authorised terminals adds extra protection when the majority of today's security is software based.

"Many of the vulnerabilities that exist from our desire to plug and play go away," he said. "And as the number of devices radically expands due to kiosks, beacons, wayfinders, cameras, mobile devices and payment devices, this provides a sort of Big Brother oversight to all of your legitimate devices."

Read more: Senior exec "pessimistic" about Apple Pay

The security platform's software layer is also updateable, enabling it to remain up-to-date with the latest encryption algorithms.