Red Segura and GRGHK, a subsidiary of GRG Banking, have unveiled a multi-vendor solution aimed at helping financial institutions eliminate the use of magnetic-stripe cards.
Michael Gericks, general manager of GRGHK Mexico, and executives from Red Segura demonstrated the solution at a conference event held at Club de Ejecutivos in Quito, Ecuador.
Red Segura's kit converts ATMs into NFC/RFID/QR ready ATMs while maintaining support for legacy EMV and magnetic cards, according to a press release. GRG Banking ATMs will include this technology as standard.
Transactions are initiated by proximity of embedded PICC devices such as cards, stickers, keyfobs and cell phones to an authorized RFID reader containing a Secure Access Module (SAM).
A user will be able to register his smartphone by scanning a QR code shown on the ATM screen, then initiate a transaction using the QR code shown during the idle-loop on the ATM screen.
This solution uses cryptographic technologies such as key diversification, key sectorization, unique key per session, unique key per transaction, unique card per transaction and short-life cards.
Short-life cards are virtual cards that expire in less than 60 seconds or at transaction completion and can never be used again.
The product presentation was held after a pilot run for more than three months at Banco Nacional de Fomento and Coopera.
Red Segura and GRGHK will start the project in Latin American countries in early 2012.
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