Qadium corrals $40M, Open Banking partners with Ping: Friday Deal Book for 9/1/2017

OWI’s Friday Deal Book provides you with a weekly roundup of partnerships, funding, and product announcements in the identity industry. Here’s a quick peek at what you need to know for the week ending Sept. 1, 2017.

Cybersecurity startup Qadium raises $40 million
The round was led by IVP with participation from TPG Growth, NEA, Founders Fund and Susa Ventures, bringing Qadium’s total funding to $65 million. Qadium provides software-as-a-service cybersecurity solutions focused on providing visibility into company’s device exposure, helping companies manage increasingly complex infrastructure. The company plans to use the fund both to grow its product offering as well as invest in sales and marketing. Qadium’s focus so far has been on large corporates, such as Capital One and CVS, with annual price tags upwards of $500,000. Corporate appetites for cybersecurity solutions that bridge cloud, bring your own device, and on premise monitoring remain strong as companies reimagine their data infrastructures. [Read more]

UK Open Banking initiative partners with Ping Identity for IAM
Open Banking has chosen the Ping Identity Platform as the identity and access management provider for UK banks and financial services organization participating in the open banking ecosystem. Open Banking is a private body set up and overseen by the UK Competition and Markets Authority (CMA) to drive open payments. Given the centrality of the Open Banking initiative to the UK’s national response to the second Payment Services Directive (PSD2), this represents a substantial win for the Colorado based identity company. Identity and access management has been a strong performer in the software as a service category, with Ping rival Okta debuting as a unicorn with its April IPO. [Read more]

Judge rules that victims of Yahoo data breach can move forward with class action suit
The Northern District Court of California ruled that the class action suit brought against Yahoo by victims of the data breach can move forward. Yahoo was pushing for a dismissal of the case on the grounds that the plaintiffs could not specifically show how the breaches had harmed them. However, District Judge Lucy Koh found that Yahoo’s actions resulted in “alleged risk of future identity theft” and “loss of value of their personal identification information.” This is bad news for Verizon, who acquired Yahoo’s internet business in the midst of the data breaches coming to light. Verizon was able to lower the purchase price, but with this ruling the $300 million discount may not be enough to cover the potential liabilities. Furthermore, this sets additional precedent for other identity theft victims to establish standing in class action lawsuits — potentially casting a much wider liability net on the industry. In August, in a similar move, the D.C. Circuit Court of Appeals ruled that CareFirst customers have the standing to sue the health insurance provider over a 2014 breach. [Read more]

Digital Identity SA invests €500,000 in Oraclize
Digital Identity SA led a €500,000 seed round for Oraclize, a provider of infrastructure for Blockchain and distributed based applications. The company describes itself as offering “attestation as a service” and provides a safe data-transport-layer for decentralized applications. The funding will be used to expand their applications and use cases. [Read more]

Alipay rolls out ‘Smile to Pay’ pilot at KFC offshoot KPRO
Customers at Yum China’s latest concept store, KPRO, can now pay using their faces by leveraging Alipay’s ‘Smile to Pay’ technology. This is Alipay’s first ‘Smile to Pay’ launch. Last year, Google piloted a similar facial recognition based payment system at Bay Area McDonald’s franchises. Alipay’s technology involves a multi-step authentication process — including a facial scan and mobile phone number — to verify the identity of customers and facilitate payment. In recent years, the point of sale market has seen increasing competition from startups such as Square and Poynt. However, biometrics-based payments have yet to go mainstream in brick and mortar locations. While brick and mortar retailers will need to invest in new technology to enable biometric based payments, Chinese consumers have been particularly active in embracing biometric technologies, at a rate much faster than their Western counterparts — a topic OWI Labs detailed at length in our “Identity in Asia 2017” report. Chinese retailers looking to attract young affluent consumers could be poised to drive growth in this market. [Read more]