At the International Consumer Electronics Show 2013, Michel Delaux, CEO and co-founder of Bruz, France-based TazTag Inc. demonstrated his company's new contactless two-factor authentication solution, which was developed using technology from Lille, France-based natural security.
The system relies upon a small transmitting that holds the user's credit card information and biometric data. Because it uses mid-range rather than near-field communication, the device never has to leave the user's pocket or handbag. The user reviews the details of a transaction on a touchscreen and then places a finger on the biometric reader to authenticate and approve the transaction.
The use of biometrics guarantees that the device and its owner are at the same place at the same time, and solves the problem of a lost card or stolen payment data.