Fin-tech startup ToneTag, which offers contactless payment solutions through sound waves, has brought a brand new, robust layer of security to its contactless payments by introducing blockchain technology in the contactless payments for its global customers.
ToneTag has always been at the forefront of disruptive technology in the fin-tech space. Blockchain technology has the potential to completely redefine the way transactions take place as it brings unprecedented advancements in fraud prevention.
said Kumar Abhishek CEO, ToneTag.
ToneTag enables sound wave based contactless payments that are traceable, transparent, and secure. Every party involved in the transaction is protected by the blockchain since it maintains a record of every transaction that ever took place in the system.
Blockchain creates a distributed public ledger that records all transactions in a particular system. The blocks record some or all of the current transactions and once it is completed the block is timestamped and hashed into the permanent database or blockchain.
The blocks are linked to each other in a linear, chronological order where each new block contains the hashed details of the previous block. Thus creating a chain of transactional information so that every block that is added, protects information in the previous one.
The data stored in the blocks are cryptographically hashed. ToneTag payments itself are tokenized where a unique identifier replaces sensitive transaction information and none of the actual customer or merchant transaction information are revealed or shared hence making the entire process highly secure and fraud-proof.
There are no centralized databases in a blockchain. Complete or partial blockchains are stored in nodes where the database is constantly updated. Distribution and decentralization ensure that no one individual or party in the system has the power to modify or tamper with the data. It also removes the need for a third party or central authority to authenticate or process peer-peer transactions and increases transparency.
Blockchain in ToneTag system will ensure safety against fraudulent transactions for both merchants and customers; record and validate each and every transaction, protecting them from the threat of hacking; and will eradicate anonymity and pave the way for traceable transparent transactions.
While paying through ToneTag, customers can identify whether the merchant outlet they are dealing with is exposed to risks or if it has witnessed fraudulent transactions in the past. Similarly, merchants can detect if the transaction is unusual or if the customer was involved in fraudulent transactions earlier.
These benefits combined with the huge benefits of ToneTag’s patent pending technology of payments will help in establishing a fully secure yet seamless transaction system. ToneTag’s core technology makes use of sound waves as well as NFC to offer frictionless proximity- based payment solutions to both merchants and customers.
It allows a universal experience of payments for everyone, be it the person with a modern smartphone with any OS or the person with a feature phone or the different merchants using different technologies at their respective payment counters. The ToneTag SDK can be integrated with both merchant payment points (mobile, POS, EDC) and customer interaction points (mobile wallets, mobile banking apps).
Last year, ToneTag raised $1 million in funding from Reliance Capital’s Venture fund arm for hiring new people and increasing the sales and adoption of its cashless payment technology.