Today MultiPay Global Solutions is announcing its new partnership with anti-counterfeiting blockchain technology provider Luxochain. By combining forces, Luxochain and MultiPay will help businesses maintain and enhance their reputation by ensuring product authenticity without impacting the customer experience. The new partnership provides the world’s first integrated payment and blockchain solution for the authenticity of products in the luxury, retail, and pharmaceutical industries.
Posing a major issue for, retail, fashion, luxury goods and pharmaceutical industries, counterfeit products are damaging the profitability and reputation of many enterprises. Predicted to be a nearly trillion-dollar industry by 2022, counterfeit products seriously impact the sales and revenue of businesses, limiting their ability to grow and innovate. Beyond the financial cost, counterfeit products have a huge negative effect on consumer trust and confidence in a brand. Research from Incopro has shown that 66% of consumers that unintentionally buy counterfeit goods have lost trust in buying from that brand again. A further 34% are less likely to buy from a brand’s website if its products had been susceptible to counterfeiting elsewhere online. To combat this large and growing threat, businesses need simple, seamless solutions that make authentication a part of the purchasing experience.
Simple, seamless technology
“Luxochain’s world-class expertise in leveraging blockchain technology to deliver product authenticity makes it the perfect partner for us to deliver a solution that can help combat counterfeiting without degrading the customer experience,” said Delia Pedersoli, COO at MultiPay Global Solutions. “By connecting MultiPay’s unique payment API that enables businesses to collect any payment, anywhere with Luxochain’s innovative blockchain solution, businesses can provide customers with a unique certificate of authenticity at the point of sale. This quick and simple process gives consumers confidence in the products they are buying while not adding in extra steps to the buying process.”
Available from Autumn 2021 to all new and existing MultiPay Global Solutions customers, the new combined authentication and payment system can be used across multiple industries including fashion, art, automotive, jewellery, pharmaceutical and food and drink.
Luxochain’s technology works by combining electronic tags that are inserted into a product at the point of manufacture. These are connected to a non-fungible token (NFT) which acts as a unique digital fingerprint on the Luxochain blockchain. Once a purchase is completed through the MultiPay system, the NFT is transferred to the customer and placed in their Luxochain app. The NFT can then easily be accessed or passed on if the owner decides to sell the product at a later stage.
“Partnering with MultiPay was a clear choice for us in progressing the growing adoption of Luxochain,” said Davide Baldi, CEO at Luxochain. “To win the fight against counterfeiters, businesses need solutions that customers can trust and are easy-to-use. If not, people simply won’t use it and the system will fail. When we met with MultiPay it was clear they saw the importance of the customer experience in the same way we do. Their ability to reconcile payments through a single API and therefore take any payment anywhere perfectly met our desire to simplify the purchasing process and add in an extra level of authenticity that can be used across the whole lifetime of a product.”
Luxochain’s system not only provides reassurance to the initial purchaser but also for those looking to buy products on the second-hand market. Buyers and sellers on the second-hand market can also use the Luxochain app and the NFC reader on their phone to check the authenticity of a product by accessing the details stored on the electronic tag. This significantly reduces counterfeiting and increases confidence in the products being bought.
Delia Pedersoli concluded: “For too long, brands have suffered from lost sales and diminished reputations at the hands of fake, counterfeit products. Now, thanks to new technologies such as Luxochain, they can fight back and regain the trust they rightly deserve. This is great news for businesses and customers alike.”