Revolutionize Card Payment Security With Dynamic Code Tech

Q: What added value does Ellipse offer to credit and debit cards?
A: We offer advanced security solutions for credit and debit cards through the Ellipse Verification Code (EVC) dynamic security code technology. This battery-free technology integrates a dynamic security code directly into these cards, which generates a new code each time the card is used at a POS, ATM, or even via a Mobile App, providing an additional layer of protection without requiring changes to the existing payment infrastructure. We manufacture and supply EMV modules equipped with the technology and work with smart card manufacturers, who then supply issuers and banks, allowing for easy implementation without adding operational changes.

Our technology has been certified by major international payment networks such as Visa and Mastercard, and has passed rigorous quality processes, such as Mastercard's CQM. During these tests, our solution underwent durability evaluations, including repetitive twisting, to ensure that the card can withstand physical wear under real conditions. The technology is also compatible with all standard card materials, including metal and biodegradable options, ensuring that its innovative features are available and functional across Issuers’ entire portfolio, without limitations.

EVC is designed for everyone, offering an intuitive, easy-to-use, and transparent experience that transcends technical proficiency and demographic boundaries.

Q: How well-positioned is Ellipse in the Latin American market, and how is it expanding its presence?
A: Our technology has a solid foothold in Latin America, thanks to our partner network. We continue to grow our presence, driving awareness and adoption of our technology. We already have pilot projects in several countries, and many issuers in the region are discovering the benefits of our solution, especially in terms of compliance with local regulations that require dual-factor authentication.

Q: How has the Latin American market responded to the implementation of your EVC technology, and what benefits did it experience?
A: The response has been positive, although it varies depending on the maturity of each country in terms of regulation and security. In more advanced markets where a second factor of authentication is already required, EVC is readily adopted as a complement that strengthens existing solutions, significantly reducing fraud in non-in-person transactions. In countries that have not yet implemented robust security measures, the response towards EVC is favorable, as it does not require complex structural changes — just integrating the dynamic code into the corresponding switch.

Q: What role do strategic partnerships play in your growth, and how do these collaborations benefit your clients in Latin America?
A: Partnerships are essential to our expansion in the region, as we work hand-in-hand with smart card manufacturers who facilitate the delivery of our solutions to banks and issuers. These collaborations allow us to offer efficient and frictionless integration, ensuring that adopting our technology does not require changes to existing infrastructure and supply chain, which accelerates implementation and improves the end-user experience.

Q: How did the pandemic influence the adoption of security technologies in transactions in Mexico?
A: The pandemic significantly accelerated the adoption of digital technologies, as many consumers began conducting online transactions for their daily needs. However, this massive shift exposed system vulnerabilities to fraud in non-in-person transactions. During this period, we saw an opportunity to merge the best of the physical and digital worlds with our EVC technology. The growth of e-commerce also led to an exponential rise in fraud, underlining the need to implement preventive solutions to reduce transaction risks.

Q: What makes EVC technology unique compared to other payment security solutions in the Latin American market?
A: Our EVC technology offers a preventive approach to fraud in e-commerce, rather than a reactive stance. EVC dynamic code is integrated seamlessly into EMV, and changes with every contact or contactless transaction to eliminate the possibility of fraud. Each purchase has its own unique code, ensuring continuous protection, even in scenarios with multiple transactions over a short period of time. It also does not depend on connectivity or on the adoption of mobile apps, ensuring greater accessibility and continuity of use, both in the physical and digital worlds.

Q: How do you ensure compliance with security and privacy regulations in the Latin American environment?
A: Our solution is 100% compliant with security and privacy regulations in Latin America, as we do not expose any sensitive user data. The entire transactional process follows the same encrypted channels as traditional payment methods, from the purchase to final authorization, without revealing any personal information at any point. For this reason, the EVC technology includes an EMV protocol counter, which allows for a detailed and encrypted record of all transactions.

Q: What opportunities has Ellipse found in the Latin American B2B sector?
A: We identified key opportunities through a strategic outreach through major payment forums in Mexico, Brazil, Argentina, Chile, Ecuador, and Colombia. Surprisingly, over 60% of the banks we have spoken to did not know of our technology, so our initial goal is to raise awareness of our solutions. We promote proof-of-concept trials that allow financial institutions to see how our solutions help reduce fraud and vulnerabilities in credit and debit transactions.

Q: How is EVC technology expected to evolve, and what factors will drive its mass adoption in the coming years?
A: Demand is growing organically, similarly to contactless card technology. In the coming years, it will be common for everyone to have a card with EVC technology, as we see it as the natural evolution of the payment smartcard. They not only bring on an undeniable cool factor, and aesthetic appeal, but also provide an additional layer of security, making them a valuable proposition for any financial institution.

Q: What are Ellipse’s main priorities to close this year and start the next one, and what role does Mexico play in these objectives?
A: This year has been key for our operation in Mexico and Latin America, as we focused on raising awareness about the technology. We are now in the second stage, with several pilots underway in both Mexico and other countries in the region, which are being well-received. Our goal for 2025 is to start delivering cards at commercial volumes. We are already in talks with issuers, both in Mexico and several Latin American countries, to bring these cards to the market.

Q: How will the company continue to drive the adoption of EVC technology, and how will it address the challenges associated with its mass implementation in the market?
A: We will continue with outreach activities and participate in key industry events, which is essential for the success of any new technology. We must remain present and support the evolution of payment methods. Mass adoption will be key to our long-term strategy, as it will allow us to use economies of scale to benefit both users and issuers. We are working on opening new opportunities and strengthening our presence in the market so that eventually everyone will have a card with EVC technology in their hands.