Overview

pa href="https://www.civic.com"Civic/a is a visionary digital identity company, leveraging identity verification technology to secure and simplify payment processing. The ability to prove who you are is an essential human need. Identity is how people engage in the world and how people access goods and services. Civic started as a digital identity company, creating a world where people can control and protect their digital identity. Now, Civic is integrating innovative identity verification into payment processing, enabling retailers and vendors to take payment without worrying about fraud or identity theft. Civic is a creating an identity and payment solution that is a win for both business and consumers./p

Supernova Award Category

Data-Driven Digital Networks (DDNs) and Business Models

The Problem

pProving and verifying Identity is the backbone of any society. Yet, the way that we currently prove and verify identity is broken. In an increasingly connected world, the number of data breaches, fraud, and identity theft continue to rise. Personal data is increasingly valuable and vulnerable, and companies and organizations must deploy increasing resources to protect and safeguard this information. /p pOver 3 billion records were compromised in just the first half of 2018, a 72 percent increase from 2017 (Gemalto). There were 16.7 million identity theft victims in 2017, an 8 percent increased from 2016 (Javelin Strategy Research). It is clear that people have lost control over their personal data, and the ability to prove who you are is threatened. /p pPersonal information is often compromised during the payment process. With the rise of e-commerce, more and more transactions are happening online, where no identity verification is required. This means that retailers don’t know who is on the other side of a transaction, making it easier for fraud and identity theft to take place. Online transactions also mean that personal information, like address and credit card information are stored in databases, where they are sensitive to data breaches./p

The Solution

pCivic is first and foremost transforming the way we prove and verify identity. Imagine a world where you have a digital identity on your mobile device that can be used anywhere. Civic is focused on fundamentally changing how people share their personal information, from identity credentials to credit card information. This will create a better, more convenient, and more secure identity verification experience for companies, organizations, and individuals, reducing the chance the personal data will be hacked and misappropriated./p pIn April 2019, Civic a href="https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/civic-network-expands-with-the-civic-pay-app-and-12-automated-retail-partners"announced Civic Pay/a, a mobile application that combines both identity and payment.  Civic Pay applies the existing identity verification technology with payment, integrating identity into the payment process. By incorporating identity into the payment process, this convenience and security expand beyond just proving identity to providing payment while offering retailers a host of benefits from blockchain-powered payment processing./p

The results

pHave you ever been to a bar or a liquor store and been turned away because you forgot your ID? The ability to prove who you are, or in this case, how old you are, is essential to how people engage in the world. The digital identity technology behind smart vending machines solves the forgotten-ID problem, but combining identity and payments helps make identity verification and payment process more secure and straightforward./p pCivic has brought the powerful combination of identity and payment to life with beer vending machines. At a href="https://www.adweek.com/digital/forget-about-quarters-this-beer-vending-machine-at-sxsw-only-accepts-cryptocurrency/"SXSW 2019/a, attendees were able to download the Civic Pay app, verify their identity, and pay for a beer by simply scanning a QR code on the vending machine. The beer vending machine is a product that Civic is bringing to market, but the potential of technology that simplifies identity verification coupled with payment capabilities extend far beyond automated retail solutions./p

Metrics

pTo date, Civic has over 15 vending partners and anticipates to open up completely new markets for age restricted products with automated retail partners - there are 1,000 machines expected to go live in 2019 and thousands more the following year. Costs for both identity verification and payments are likely to drop by at least 50% compared to existing solutions, making it cost effective and attractive for operators to expand into these new types of machines. /p

The Technology

pMost transactions require some form of identity verification and building identity verification into payment functionality simplifies that process. Vending machines make digital identity accessible and give people the ability to experience new technology. In addition, with the Civic Pay app, once users are verified, they are able to use the same verification over and over again, furthering streamlining the identity and payment process./p

Disruptive Factor

pImagine if you could prove that you prove your identity and provide payment in a single transaction. No need for a physical ID check. It’s a completely new way to prove and verify identity in the modern world.  /p pThe identity verification industry is going through a massive transformation. Online transactions are continuing to increase, and identity verification is a critical component in these transactions, as consumers are managing and opening virtual accounts. As identity theft is rising, it is more critical, and complicated, for companies be confident that their customers are who they say they are, not to mention figuring out the best way to store and secure that increasing amounts of personal data. McKinsey predicts the identity verification market will grow to a $20 billion dollar market by 2022, compared to a $10 billion market in 2018. /p pDigital identity will be a part of the future, and Civic is a key player in transforming the way that we prove and verify identity, creating trust so that people can interact online with confidence and security. To drive this transformation, Civic is focused on consumer-friendly use cases and enterprise partnerships that build trust for digital identity technology, drive mass adoption, and simplify the payment process for consumers and retailers. /p

Shining Moment

pIn March 2019, Civic introduced a proof-of-concept for identity and payment. Most transactions require some identity verification, whether it is entering a PIN or signing a credit card slip. Some transactions require higher standards, like buying alcohol. With the Civic Pay app, users can prove their identity and pay for a good (or service) in a single transaction. In April 2019, Civic announced 12 automated retail partners, who will implement Civic Pay in vending machines around the world./p