Arculus: Balancing Security and User Experience Is Blueprint for Payments Innovation

For years, enhancing payment security often came at the expense of user convenience. Complex authentication processes, multistep verifications and transaction delays were the norm.

However, as payments innovation heats up, companies are looking to use advanced technologies to create solutions that are both secure and seamless, capable of making security invisible and the payments experience rewarding.

“The most important thing in design is absolutely putting the end user and the customer first,” Adam Lowe, PhD, chief product and innovation officer at Arculus/CompoSecure, told PYMNTS.

The secret to success in payments security lies in prioritizing the end user without sacrificing the security needs of financial institutions, he said.

Lowe has a unique perspective on this dynamic. Operating in a B2B2C environment, where products are sold to banks and FinTechs but ultimately used by consumers, Lowe’s team must navigate dual priorities like authentication and experience almost daily.

“You almost have to have this layered approach … a requirements document where, OK, I have these requirements from the consumer, we have to make sure we meet those, and we have additional requirements from the bank who’s ultimately purchasing the product,” he said.

This dual-minded approach is particularly critical in the payments space, where frictionless experiences often compete with stringent authentication protocols, and where frustrating user experience bottlenecks can turn a repeat customer into a lost one.

The Dual Mandate: Security vs. User Experience

As consumers increasingly demand safety and simplicity, the payment innovators that deliver on end-user expectations and security requirements will lead the market forward, he said.

Lowe and his team tackle this challenge by adopting what he described as a “lean startup mindset,” even within a larger organization.

“You are ideating, right?” he said. “So, you’re building something, testing it, building something, testing it … so that you can incorporate new ideas, and you can hone it to what the customer really wants and needs.”

One example of this innovation is Arculus by CompoSecure’s tap-to-authenticate metal card, a product Lowe said is among the most significant advancements in payment technology in recent years. Arculus Authenticate employs a premium metal card, which, when tapped against a mobile device with a bank or FinTech’s app can authorize high-value transactions and authenticate new devices, eliminating the need for passwords or external authentication apps.

This streamlined approach addresses security concerns, as data breaches often stem from poor password practices, Lowe said. By incorporating multifactor authentication directly into a familiar form factor — a metal card — Arculus Authenticate enhances security without compromising convenience.

“You take a product, you think, what problem does this solve?” he said. “What is the magnitude of the problem I’m solving? How fast can I get it to the market, and how fast will it be adopted?”

Emerging Technologies and the Future of Payments

The goal of payments innovation is to push the industry forward, and one of the more promising frontiers in payment authentication is the integration of traditional and emerging payment ecosystems, including cryptocurrency and blockchain technologies, Lowe said.

Arculus by CompoSecure’s approach is to make the consumer experience as consistent as possible while handling complexity behind the scenes, he said. By standardizing the physical action of tapping, payment products can deliver a familiar experience while enabling a range of transactions.

Emerging technologies such as artificial intelligence are also reshaping product development at CompoSecure. By staying dynamic in design and avoiding monolithic project timelines, Lowe’s team can integrate new technologies with agility, he said.

“It’s not a 36-month monolithic sprint toward something,” he said.

Instead, they iterate quickly, ensuring that their solutions remain relevant and forward-thinking.

When it comes to short-term priorities, Lowe pointed to the increasing demand for secure identity and access management (IAM).

“The biggest need right now is IAM, which means people getting into their accounts securely and keeping attackers and criminals out,” he said.

In the long term, Lowe said he envisions a future where digital transactions are as effortless and secure as traditional ones. He described a vision of a “global digital traveler” who can use diverse digital assets as easily as cash.

“There’s no reason I can’t pay with a digital dollar,” he said. “There’s no reason I can’t pay with another digital asset.”

Arculus by CompoSecure’s goal is to enable secure transactions regardless of the underlying store of value, he said.