The ASX-listed group (ASX:YPB) says PanPass will be the first commercial client for its “breakthrough” MM1 authentical solution, with the agreement marking the delivery and commercialisation of the technology on time in the second half of 2019, as previously foreshadowed.
According to YPB Motif Micro 1 represents a genuine technical and commercial breakthrough in creating a high security, smartphone readable, product authentication solution for mass consumer goods markets.
YPB says PanPass prints approximately 15 billion security documents annually which includes in the order of 3 billion product security labels per annum predominantly with “QR” codes to its customers in China, and initially intends to use YPB’s solution to protect its own product security QR codes from counterfeit.
YPB says QR codes are easily copied, spoofed and substituted with consequences from fake product substitution to identity theft, bank account fraud and malware intrusion.
PanPass was established in 1996 and has six service centres and 48 branches in China.
YPB Executive Chairman John Houston said: “I can’t over-emphasise how much our smartphone authentication breakthrough can transform YPB. It greatly expands our addressable market by shifting from our historical B2B sales to a B2C consumer marketing sales.
“YPB’s technology will provide brands with a direct, personal, low-cost channel to a willingly engaged consumer which can be extremely valuable to brands and the discussions that we, our channel partners and brands are having reflect that.
“Increasingly, we will be selling engagement powered by authentication with much higher probability of sales success compared with our earlier anti-counterfeit offer.”
Houston said having a product security label provider of “PanPass’s stature adopt our solution is testament to its quality and value – it is a true breakthrough. We look forward to working with the PanPass team in an immediate rollout.”