The Arcot approach relies on the ArcotID software smart card to strongly authenticate users and digitally sign transactions, performing all the functions of a traditional, physical smart card but in a software format. Using Arcot‚s patented camouflage approach to securing a private key, the Arcot ID securely protects a user‚s credential in a tamper-proof software container, while providing the end user the maximum flexibility and convenience by virtue of its portability and roaming capability.
Platforms require an "invest until it hurts, and continue doing so" state of mind, until such time as the platform reaches practical ubiquity. Investment creates a significant barrier to entry, and every dollar invested is a dollar leveraged many times over by the ecosystem and, if properly managed, by self.Lots of parallels to service platforms also. Most payment-related businesses, for example, involve the same chicken and egg issues with the potential for exponential adoption once critical mass is achieved. PayPal is the most recent, successful example. As I recall, PayPal spent roughly $200 MM on customer acquisition through their bounty signup program.
To use MasterCard SecureCode, consumers will select their own private SecureCode via the Internet or phone, as directed by their card issuer. The code is managed by the card issuer and is never shared with any merchant. Much like the familiar authentication process required for use of a bank ATM, MasterCard SecureCode requires cardholders to enter their special code in a pop-up window or box on their PC before their online transaction can be completed. With this extra step, consumers can be confident that their account is protected, and card issuers and merchants gain greater assurance about the identity of the person completing the transaction.MasterCard says that online merchants will benefit from consumers using SecureCode:
Online merchants that support MasterCard SecureCode will benefit from a MasterCard rules change that shifts liability away from the merchant for chargebacks due to cardholder non-authorization („I didn't do it‰) when SecureCode has been utilized. Chargebacks of this nature currently represent as much as 84% of all electronic commerce chargebacks. Merchants may also benefit from an increase in legitimate transactions for existing and new markets, including cross-border transactions ˜ thereby opening up the global marketplace and increasing revenues.