- Ipsidy operates an Identity-as-a-Service platform that delivers a suite of secure, mobile, and biometric identity solutions
- The New York biometric specialist has four operating subsidiaries in Colombia, South Africa, Peru and the UK
- In Colombia, its technology refills bus transit cards and processes electronic money transfers for the postal service
What Ipsidy does:
Ipsidy Inc (OTCMKTS:IDTY) is a dominant player in the crucial multi-factor authentication and identity management space. The New York company operates an Identity-as-a-Service (IDaaS) platform that delivers a suite of secure, mobile, and biometric identity solutions.
Traditional identity management systems and processes are no longer capable of keeping up with modern demands and increased security risk. That's where Ipsidy fills a void by providing biometric identification, verification, electronic transaction authentication, and processing solutions.
After the massive hacks of Equifax Inc (NYSE:EFX), Target Corp (NYSE:TGT) and Home Depot (NYSE:HD), CEO Philip Beck and the Ipsidy team saw a huge market for the company’s proprietary biometric technology.
Founded in 2011 as ID Global Solutions Corp, Beck and CFO Stu Stoller came on board in 2017 and re-imagined the company as Ipsidy — a play on the Latin word “ipse”, which means self. Together with the original founder Tom Szoke and his team, the group has built a suite of new authentication products around its core of existing applications.
The company’s business was the legacy of its roots as ID Global Solutions, which provided biometric fingerprint-matching technology to the US Transportation Safety Administration. The acquisitions of MultiPay in 2015 and CardsPlus in 2017 bolted on transactional routing and credentialing products.
Beck and his team are not newcomers to multinational transactions and authentication. He started Planet Payment Inc in 1999 and built it into a Nasdaq-listed company before it was sold in 2017.
How is it doing:
Ipsidy has raised about $20 million from investors, according to its CEO Philip Beck, and in November the company booked revenue of $1.9 million for the first nine months of 2019. Ipsidy recently closed an equity funding round for proceeds of $3.1 million, by issuing around 38.8 million shares.
In January, Ipsidy realigned its corporate organization, making management changes to execute its customer acquisition goals. Tom Szoke has assumed the role of chief operating officer with operations, sales and business development responsibilities. Chris White, who joined the company in 2018, is now the chief technology officer.
Four products comprise the core of Ipsidy’s mobile authentication business: Concierge Identity Services, Financial Transaction Authentication, Identity & Account Authentication, and a Mobile Payment Ecosystem.
Ipsidy has expanded its Identity-as-a-Service platform across both Apple and Android platforms. Its Concierge app, which enables real-time monitoring of residents and visitors entering a building, is now available on iOS and Android. In addition, its Time app now runs on Android — allowing employers to manage attendance across multiple worksites and geographic locations.
In a big win, Ipsidy Peru SAC forged a pact with RENIEC, the South American country's national ID registry, which issues electronic national ID cards, to channel Ipsidy’s Proof platform in Peru. Proof by Ipsidy is a mobile identity verification solution using government-issued credentials, combined with real-time biometrics. Under the deal, Ipsidy will be able to connect its IDaaS platform to RENIEC in Peru to submit facial biometric and national ID card data for validation against RENIEC's own national identity records.
Lastly, the company has integrated its new FaceLok software development kit (SDK) into the Ipsidy mobile app, as well as Time and Concierge.
On Ipsidy’s list of achievements is the rollout of its program Verified, which authenticates account access requests as well as business transactions using biometric technology on mobile devices.
It has also launched Access, a biometric tracking program which protects the perimeters of buildings or public events using just a tablet and a Bluetooth beacon. Thanks to an agreement with Ayonix Face Technologies, Access is able to adopt the speed and detection capabilities of Ayonix’s 3D facial recognition technology. Another of the company’s offerings is Transact, a mobile payments authorization network.
In Colombia, Ipsidy’s technology refills bus transit cards and provides transaction processing for electronic money transfers and bill payments for the country’s postal service.
Ipsidy has also signed key resellers to market its Access and Verified programs in the US, Peru and the Caribbeans. AS•NET, a digital transactions solutions company, has signed a pact to join the Ipsidy Partner Network and integrate the company’s Proof and Verified biometric identity offerings into its services in Colombia. It has also signed Noftek LLC as a reseller of its products in the British Virgin Islands.
Ipsidy has jump-shifted its strategy to close deals in Latin America and the Europe, Middle East, Africa (EMEA) region.
In a promising deal, Ipsidy and Skypatrol LLC are bringing SkyOne lock — which combines mobile, biometric identity authentication services and GPS technology — to market. SkyOne lock elevates the security around locks used to protect valuable mobile and remote assets by tracking a lock's location with the Gurtam Wialon platform and using facial biometrics to allow only authorized people to open a lock. Skypatrol will offer SkyOne locks as part of its GPS-based fleet-management solutions in North America, Europe, Latin America, and the Caribbean to its customers who operate over a million vehicles.
Ipsidy has also signed a letter of interest with local partners to establish operations in the United Arab Emirates and kicked off sales activities to target specific opportunities.
The biometric security specialist is likely to get a boost from branching into Peru and Chile after signing an agreement with Mobile Solutions Peru, a GPS solutions provider in Latin America. As part of the deal, Mobile Solutions Peru will offer Ipsidy’s suite of biometric identity and authentication products across Peru and Chile.
The addressable market is huge, according to Beck, comprised of all smartphone users in the world, a number of whom could potentially enroll more than once with Ipsidy customers. Industry experts estimate the market size to be in the order of $32 billion on various metrics.
What the boss says:
Ipsidy CEO Philip Beck said: “Ipsidy's Identity-as-a-Service Platform solves everyday problems with biometric certainty."
He added: "We believe that we are at an inflection point based on our engagement and discussions with business partners and potential customers. The Ipsidy team is working on closing opportunities in the Europe, Middle East and Africa (EMEA) and LATAM regions, that we believe will be significant.”
Contact the author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive