[DFN on-site] Domestic duty-free industry pays attention to DM Plus 2.0, a non-face-to-face verification system

 

Developed due to the occurrence of credit card fraud when making online transactions at domestic duty-free stores overseas
Online duty-free store sales in 20 years were KRW 5,4587 billion, accounting for 35.2% of total sales
You can easily authenticate yourself with your passport information, and you can pay by credit card normally.
Non-face-to-face online transactions due to coronavirus can be expanded outside of duty-free shops
2021-05-12 14:06:29 Reported by Kim Jae-young

 

As technology for identification is being introduced in the domestic duty-free shop industry in earnest, extraordinary interest from related industries is being drawn. As online transactions are revitalized due to the corona environment, the identity verification system is revitalized, attracting more attention. We met “Woo-Seok Yang” from Dion Inc. at the TR&DF office and asked about the background and status of development, as well as the future application process.

 

At the end of 2019, at Duty Free Shop A, the largest global duty-free shop in Korea, approval was canceled in a number of transactions in some transaction items that paid for online product purchases with a credit card. As a result of analyzing what was the cause of the duty-free shop, we found a problem that the card information did not match with the person who purchased the item. Under the current customs law, it is possible to pay with air ticket information, passport information, and credit card or cash with verified identity when purchasing goods at domestic duty-free stores, but online passport information verification was vulnerable.

 

Domestic duty-free stores have introduced a solution that can compensate for this under the assumption that serious problems may occur online, where non-face-to-face transactions and payments are mainly performed. At the same time, the coronavirus spread widely all over the world, and online transactions have emerged as a trend. The total sales of domestic duty-free stores for the year 2020 as compiled by the Korea Customs Service amounted to about 15 trillion won, of which about 5.45 trillion won was counted as online duty-free store sales. Online accounted for a whopping 35.2% of the total transaction portion, and it is expected to increase in the future.

 

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▲ Photo = Provided by Detion Inc. / DM Plus app running screen

 

If a problem occurs in online transactions, the duty-free shop consumes a lot of time and money, and there is a possibility that the transaction may eventually be canceled. It is to develop a solution that can be applied to a personal authentication system in case of a non-face-to-face transaction. Yang Woo-Seok, CEO of Dsion Co., Ltd. said, “I started a startup after working at Eximbay, an overseas electronic payment solution company of a duty-free shop, for 8 years, and when I heard that there was a payment problem related to self-authentication, I started development immediately.” “We have developed’DM Plus’ as a solution that can’Risk hedge’ the risk that credit card transactions may be canceled, and easily non-face-to-face authentication of passport information, which is the core of duty-free payments.”

 

Representative Yang said, “To prevent cancellation of credit card transactions,’FDS (Fraud Detection Syatem)’, commonly referred to as anomaly detection system, is widely used, but there are no essential passport information or mobile phone-based information due to the nature of the duty-free business. “DM Plus is a non-face-to-face system that can be integrated with existing FDS information, including passport information and mobile phone-based information, and then comprehensively determine and finally authenticate the person.” This is the background of the creation of a solution that is essential for identity verification of online duty-free shops, which is emerging as a new sales channel in the duty-free shop industry as non-face-to-face transactions are activated due to Corona.

 

▲ Photo = Provided by Detion / Detion’s development of DM Plus

 

An official at Dsion Co., Ltd. who attended the interview said, “Currently, DM Plus is the largest duty free store in Korea, Lotte Duty Free Online (Traditional Mall, English Mall, Vietnam Mall, Simplified Mall) and Hyundai Department Store Duty Free Shop (Jungmun Mall, Korean Mall). It is being applied as a solution to authenticate users,” and in addition, he said, “We are discussing an additional proposal to the Shilla Duty Free first.”

In the DM Plus app, when a foreign customer chooses to pay with an international credit card at an online duty-free shop in Korea, the user is finally authenticated by requesting the customer’s identity verification data including a passport using the DM Plus app, confirming it, and passing it to the duty-free shop. It is a means to prevent the risk of potential fraud and fraudulent transactions that can occur without identification of passport information or credit card use during online transactions at each duty-free shop. With the solution currently applied to Lotte and Hyundai’s online duty-free shops (4 Lotte and 2 Hyundai internet malls), foreign customers can pay by authenticating themselves using the DM Plus app when paying with a credit card.

▲ Photo = Provided by Detion Co., Ltd. / CEO Yang Woo-seok in discussions related to DM Plus (left)

 

“The DM Plus app has recently been upgraded to 2.0 service,” a Dsion official said. “Compared to the previous version, the real passport authentication using the NFC chip of the passport and the biometric authentication using facial recognition technology have been reinforced. It has been further strengthened,” he said. The official said, “While the existing DM Plus 1.0 was only able to extract passport information using OCR, in V2.0, the NFC chip embedded in the passport was read through a mobile device to determine whether it was a real passport. It is determined whether the user’s face is matched using facial recognition technology,” he added. “With an advanced authentication function, the actual user’s passport data can be registered in the DM Plus mobile app and used directly for authentication in duty-free shops.”

At the end of the interview, CEO Yang Woo-seok said, “Along with the rapid growth of e-commerce and non-face-to-face payments due to the corona crisis, attempts and damage cases of fraudulent transactions are also increasing.” “Especially in the case of cross-border e-commerce targeting foreigners, not Koreans, As more damage is occurring due to the lack of authentication means to authenticate global users, it is expected that DM Plus service can be used in travel industries such as station stores, duty-free shops, airlines, hotels, etc., where there are many contacts with global users. And will gradually increase service alliances.”

 

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