Winning Brands announced this week that it has in place a formal Exploratory Discussion Agreement with Securter, Inc. under Winning Brands’ Innovators Community initiative. www.InnovatorsCommunity.com
What is Securter? Why should anyone care? How can Winning Brands benefit?
Securter is a patent-pending new payment portal for online credit card and debit card transactions that dramatically reduces losses and inconvenience of identity theft by eliminating the need for consumers to enter their credit card information into the databases of online retailers (or third-party payment processors) through a computer keyboard.
Securter instead verifies the validity of the payment card through an ingenious physical technology in the cardholder’s possession. This solution prevents the growing and widespread dissemination of “your” personal information across third-party platforms. As online payments increase, so does the exposure of consumers to their stored payment information being hacked. This is an expensive headache for payment card issuers.
In North America, online “card not present (CNP)” losses are estimated to now exceed $6 billion annually. The Securter development team, which includes bright, trained, theoretical and practical experts, has conceived of a technology solution that expands the security envelope which card issuers (such as banks) can grant their cardholders, while saving merchants the contingent liability of holding credit card information for millions of customers. News reports are growing in frequency describing hacks into the confidential payment history of consumers, even with the finest retailers. This risk will only grow as the number of online merchants grows. With Securter, online payment card information no longer resides with retailers NOR ANY THIRD PARTY other than the issuers themselves, i.e. the banks.
We have seen other payment platform innovations introduced (using completely different technologies), becoming widely accepted and hugely successful options, such as PayPal, to name only one. These payment portal options were all new at the time they were introduced. They were all “innovations” at an early stage in their lives. At Securter and Winning Brands, our managements feel that an exciting addition to these options is now within reach, with similar scope of opportunity and scale.
I met with Securter management again today to review the status of prototype performance and the status of current interest by third parties. I am delighted that we now have, this week, expression of interest in principle from a major bank that issues credit cards. This is only one of a variety of potential stakeholders agreeing that something attractive is emerging in this project.
So what do Winning Brands and Securter have to offer each other?
If Securter now accepts conventional venture capital at this early stage (which it has already been offered), then it will permanently forfeit a significant percentage of its ownership, forevermore. If Securter takes a conventional loan, prior to having revenue, then it may default on its payments. Qualifying for such loans is extremely difficult for any normal people. If Securter is funded by the bank or other issuer organization that will be using the new payment system, then control is forfeited. Government funding has all kinds of strings attached.
Accordingly, the new option for Securter through Winning Brands Innovators Community is that Securter receives some of our public capital and other assistance to be recovered by Winning Brands on a multiple and self-liquidating basis, from Securter revenues, following implementation. Securter ownership is left intact, while Winning Brands shareholders have participated in the revenue of the launch of the technology on a very profitable basis. Winning Brands shareholders will have a portfolio of such entitlements from a variety of projects. We already have a waiting list.
Securter is presently at LEVEL 6 of the standardized “Technology Readiness Levels” hierarchy. This means, specifically, that the “System/Sub-System model or prototype demonstration exists and can be performed in a simulated environment. A model or prototype that represents a near desired configuration exists. Activities include testing in a simulated operation environment or laboratory”.
The next level that we are heading to, LEVEL 7, is when the “Prototype is ready for demonstration in an appropriate operational environment. The prototype is by that stage at the planned operational level and is ready for demonstration in an operational setting, including field testing under real-world conditions”.
LEVEL 8 will be the stage at which it is proven to work in its final form, and LEVEL 9 will be ready for launch.
There is a world of innovation opportunity “out there”. Winning Brands respects and appreciates the opportunity to collaborate with innovators for the mutual benefit. Much good can come from this new platform of innovation launches.