ToneTag Brings Blockchain To Contactless Payments
Whenever we talk about contactless payments, the first thing that comes in everyone’s mind is security. Every year hundreds of billions of dollars are lost due to fraudulent transactions. Both physical and online transactions are affected by fraud and so is everyone in the payment ecosystem. As contactless payment gains widespread usage, it becomes increasingly important to ensure integrity of sensitive customer data and to identify unauthorized transactions.
To address these security issues, ToneTag introduces blockchain technology in contactless payments for its global customers. With blockchain, ToneTag brings a brand new, robust layer of security to its contactless payments.
“ToneTag has always been at the forefront of disruptive technology in the fintech space. Blockchain technology has the potential to completely redefine the way transactions take place as it brings unprecedented advancements in fraud prevention.” Said Kumar Abhishek CEO,ToneTag.
ToneTag enables sound wave based contactless payments that are traceable, transparent, and secure. Every party involved in the transaction is protected by the blockchain since it maintains a record of every transaction that ever took place in the system. While paying through ToneTag, customers can identify whether the merchant outlet they are dealing with is exposed to risks or if it has witnessed fraudulent transactions in the past. Similarly, merchants can ensure whether a customer is genuine or not. They can detect if the transaction is unusual or if the customer was involved in fraudulent transactions earlier. Furthermore, all transactions are validated to ensure they are authorized, bringing about complete peace of mind for everyone who is experiencing contactless payments through ToneTag.
Blockchain creates a distributed public ledger that records all transactions in a particular system. The blocks record some or all of the current transactions and once it is completed the block is timestamped and hashed into the permanent database or blockchain. The blocks are linked to each other in a linear, chronological order where each new block contains the hashed details of the previous block. Thus creating a chain of transactional information so that every block that is added, protects information in the previous one. The data stored in the blocks are cryptographically hashed. ToneTag payments itself are tokenized where a unique identifier replaces sensitive transaction information and none of the actual customer or merchant transaction information are revealed or shared hence making the entire process highly secure and fraud proof.
There are no centralized databases in a blockchain. Complete or partial blockchains are stored in nodes where the database is constantly updated. Distribution and de-centralization ensures that no one individual or party in the system has the power to modify or tamper with the data. It also removes the need for a third party or central authority to authenticate or process peer-peer transactions and increases transparency.
ToneTag’s addition of blockchain technology brings about various benefits to everyone in the ecosystem:
- Eradicates anonymity and paves the way for traceable transparent transactions.
- Detects fraudulent or unauthorized transactions instantly.
- Ensures that the merchant outlet where payment is made is trustworthy and isn’t exposed to security risks.
- Safeguards merchants from fraud by identifying whether a customer is genuine or not.
- The technology discards the need of any third-party or central authority for peer to peer transactions.
- Fast and fool proof authentication of transactions.
- Large business-to-business transactions can be completed with significantly lower costs.
- System based transaction errors diminished.
- Records and validates each and every transaction. The records are tamperproof and timestamped, protecting them from the threat of hacking.
- Decentralization of the technology distributes power and protects individual assets.