Capital One announced on October 9, 2024, that it will make its AirKey security product available to other financial institutions, aiming to combat rising fraud in mobile payments.
AirKey, developed seven years ago, allows users to verify identity at the point of sale using credit and debit cards. With fraud losses projected to reach $6.8 billion by 2027, Capital One's initiative responds to increasing security concerns in the payments industry.
Tom Poole, Capital One's senior vice president of payments and digital identity, emphasized the need for intuitive and secure authentication methods as banks face pressure from mobile wallets like Apple Pay and Google Pay.
The AirKey feature utilizes near field communication technology, enabling seamless transactions and enhanced security for users. As banks invest heavily in payment technology, AirKey could serve as a foundational tool for an authentication network, similar to the historic BankAmericard.
Capital One's initiative comes alongside its $35 billion acquisition of Discover, which could further enhance its card offerings and security measures.