EU will standardize digital contract conclusion as of July 1, 2016 – IDnow has the perfect solution
Munich, June 1st, 2016 – A new EU regulation provides clarification for all those wishing to conclude contracts on the Internet throughout all European Union member states. Beginning July 1st, 2016, country-specific signature laws will be standardized by the regulation eIDAS. On one hand, this is especially beneficial for internationally operating companies that provide services like online credit applications or offer life insurances via internet. It is now easier for them to offer their services Europewide. On the other hand, end users in all European member states are pleased with the new and convenient process. Based on this regulation, IDnow has developed an online contract solution in combination with its video-identification product, for which it has received a European patent.
The online contract solution by IDnow is certified by TÜViT and includes the legally required identification of the contractor for the conclusion of the contract with a qualified electronic signature. The process of identifying the user utilizes the video identification solution developed by IDnow. The customer only needs a computer, a smartphone, or a tablet with video functionality, as well as a valid identification document. IDnow can verify more than 100 different international IDs and passports via video chat and offers a variety of European languages. At the end of the process, the contract can be validly signed, using a qualified electronic signature (QES), which is issued by IDnow’s cooperation partner DocuSign. This way, the hassle of printing, signing, and mailing paper contracts can be avoided.
IDnow began the development of its video identification solutions in 2012. In January 2013, IDnow submitted this technology to the Patent Office, prior to any other provider doing so. Armin Bauer, CoFounder and Managing Director of IDnow, who developed this system: “For me it was very inconvenient to have to depend on the opening hours of the post office. For example, it was very bothersome to identify when opening a bank account. Thus, the idea for the online identification arose, which is not subject to temporal or geographical limitations.” The European Patent Office published the patent on May 18, 2016, thus putting our patent into effect. Armin Bauer explains: “We are immensely pleased that we have been officially recognized by the European Patent Office as the inventor of a video identification solution. In addition to the submission of our own patents, we continuously ensure that we do not violate any IP rights.” The patented video identification procedure protects both the German Anti Money Laundering Act (GwG) compliant solution IDnow Video-Ident and the online contract solution IDnow eSign. Two additional patent applications for the IDnow product portfolio are still under examination.
More than 100 companies currently use the IDnow solutions. “For Pan-European financial companies like us, it is fantastic to have a partner like IDnow that supports our business with an innovative solution
PRESS RELEASE like IDnow Video-Ident,” says Tamaz Georgadze, CEO of Raisin.
The patent for video identification has come exactly at the right time, as the European Digital Signature Regulation (eIDAS) for electronic signatures comes into effect in all 28 EU Member States as of July 01, 2016. 508 million Europeans have been waiting quite a while for the amendment. For internationally operating companies, the previous country-specific requirements were a major hurdle. From July onwards, the new regulation states that all contracts that have been signed with QES must be mutually recognized by all EU Member States. This will provide a common European standard, legal certainty and favourable competitive conditions. Thus eIDAS offers new opportunities for companies in Europe to implement digital business models and processes. For consumers, this means a more convenient way to sign agreements and to obtain the desired products and services faster.