Particularly with VoIP services now maturing, one of the biggest challenges facing cellular operators worldwide is the need to maintain and grow Average Revenue Per User (ARPU). Expanding subscriptions to myriad mobile services has become an utmost priority. Accordingly, mobile carriers and service providers wish to increase revenue by enabling m-commerce applications and financial services for handsets. Mobile payments, electronic wallets (m-wallets) and tickets have already been successfully deployed in Asia, and the U.S. is not far behind. ClassifEye’s product offering opens potential new monthly revenue streams for the carriers, thereby increasing their ARPU. Customers using ClassifEye’s technology will buy larger data services packages from their carriers and they will be using their handsets more frequently. In addition, existing customers with older handsets will be encouraged to upgrade to more sophisticated handsets in order to benefit from ClassifEye’s applications. Carriers can also enjoy improved customer loyalty and higher switching barriers by enabling m-commerce and m-banking transactions.

By 2008, there will be 1.67 billion mobile commerce users. According to Juniper Research, revenues from mobile commerce will grow globally from $6.86 billion in 2003 to over $88 billion in 2008. These projections assume that valid identification, secure authentication and non-repudiation solutions will be in place. Micro-payments comprise a vast majority of m-commerce transactions to date. However, real and sustainable growth can only be achieved by breaking the ‘transaction barrier’ to enable macro-payments, as well. The most prominent mobile commerce initiative to date has been the m-Wallet initiative. Using the Sony Felica (RFID) chip, NTT Docomo pioneered the m-Wallet initiative in the Far East and numerous successful pilots have now been run in Europe and the U.S. Implementation of such initiatives as the m-Wallet and others requires the full trust of consumers. ClassifEye offers greater trust to consumers, which will encourage them to load to their phones with larger amounts of money via ATM’s and make frequent macro-transactions.

Security is a major issue for both electronic banking and commercial transactions. For certain electronic banking transactions in the U.S., the market is already moving to two-factor authentication; FFIEC guidelines already require multiple (i.e., at least two) factors of authentication for banking transactions. ClassifEye’s solution can be used to enhance security for e-commerce and e-banking applications, as well as mobile applications. Following are several compelling advantages for financial institutions to adopt ClassifEye’s technology:

• Financial institutions will be able to use the Company’s web-based management system, thereby avoiding prohibitive set-up and management costs;
• Offering safe, reliable and easy to use electronic and mobile services translates into new product offerings that differentiate the bank, thereby strengthening customer loyalty and enabling acquisition of new clients;
• The availability of M-Banking services can encourage the use of all banking services, which translates into increased per-customer revenues;
• ClassifEye’s real-time non-repudiation/authentication features offer greater security and mobility for remote transactions, both in the eyes of the financial institutions as well as in the eyes of customers; The shortcomings of the widely used password based authentication have proven exceptionally costly even when the infraction is not malicious. A recent Gartner Group report noted that password-related calls to help desks eat up nearly 30% of an organization’s support time and frustrated customers can migrate to another bank if problems are not quickly resolved.

As businesses become more mobile-oriented, secure remote access and identity solutions are taking on a more central role in enterprise operations. ClassifEye is teaming up with leading IT systems integrators to deliver end-to-end applications for enterprise security, identity, and access management that can be offered through carriers.

ClassifEye’s enterprise solutions will include:

• secure remote access,
• managed access,
• authentication of communications and transactions,
• non-repudiation of communications and transactions.

ClassifEye's authentication technology will ensure the confidentiality and integrity of data and communications throughout the enterprise’s network, enabling effective protection against both internal and external security risks.