The card technology is constantly changing, but one thing remains the same – the way the cards are used has not, and it is not foreseen to chance. The PIN code is still perceived as the most effective and secure form of ensuring the identity of the cardholder. PIN delivery was traditionally done by means of tamper-proof, and the customer had to come in the bank branch to collect their card and PIN envelop. Nowadays, shipping PIN envelops is considered unreliable and expensive for the banks, and to overcome these disadvantage, alternative PIN delivery methods were attempted. With the introduction of the mobile phones in all markets, SMS has become as reliable channel for delivery.

The financial services industry is revolutionized by complex technical solutions that support delivering of quality services with smaller costs and easier reach. Yet, there is this simple solution that can make so much difference when first offering your card services, and later on, when you need to renew a card. Using our versatile software platform, we at Quipu have introduced a solution of integration with the local telecom providers’ gateway to deliver the PIN to the local network. PIN by SMS is a service designed to send the PIN number to the cardholder through an SMS message, and exclude printing and shipping PIN envelopes.

Together with all savings of money and time associated, the solution allows the customer to be identified uniquely, and keep transactions safe and under control. The service supports both new PIN generation, as well as forgotten PIN generation, making it so much easier for customers to start using and reusing their card.

The request for a new card is initiated by the customer by sending a text message using the last four digits of the card number. The validation of the request is done in Quipu Processing Centre, matching the card number (last four digits) with the phone number registered for the specific customer. Once the validation is done, the customers receive the PIN number and can activate the card.

Forgotten PINs are not anymore a hassle for customers and bank branches, either, when using PIN by SMS. Based on specific settings, the customer can initiate a number of requests for forgotten PIN, together with announcing the issue to the bank which starts the PIN regeneration procedure for the specific card. Once validated, a new PIN for a card already in use is sent via SMS to the customer, having the same criteria as for new card matching.

Quipu is responsible for completion of SMPP protocols with local providers. The PIN by SMS service was implemented in July 2017 in ProCredit Bank Ukraine, and has since been successfully used with other banks, customers of Quipu.