Alliance Could Increase Passport Users

An alliance between Microsoft and Arcot Systems, an ISV that builds software for banks to authenticate online credit-card users, could increase the number of Passport users and shows how Microsoft hopes to license Passport as a platform on which ISVs can build solutions.

Passport Optional ID for Fraud Prevention

Arcot sells TransFort, software that allows credit-card issuing banks to verify the identity of credit card users at participating e-commerce sites, reducing the likelihood of fraud (banks generally cover fraud beyond US$50). Arcot also licenses TransFort to the credit card companies themselves: Visa uses TransFort for its “Verified by Visa” service, and MasterCard is building a similar service called “MasterCard Secure Payment Application.” The credit card companies then encourage member banks to sign up for these services, and e-commerce sites to support them. Thanks in large part to these deals with credit card companies, Arcot says that 3,100 member banks are using TransFort and that 10,000 online merchants support it.