Payments security firm MagicCube has raised $10 million in new funding as it looks to expand beyond its core “tap-to-phone” payments business into adjacent areas including biometrics, identity verification, and AI-focused device security. The company says the capital will be used to accelerate product development, scale international commercial operations, and broaden the scope of its software-defined trust technology.
MagicCube is best known for software that aims to deliver hardware-grade security on commodity devices. Its core platform is built around a software-based Trusted Execution Environment designed to isolate sensitive operations and protect data without relying on dedicated security chips or purpose-built payment hardware. The approach is positioned as an alternative to traditional hardware-rooted models, with the company arguing that equivalent trust guarantees can be delivered purely through software running on standard smartphones, tablets, and other connected devices.
The company’s flagship product, i-Accept, sits in the tap-to-phone or SoftPOS category, enabling smartphones to function as contactless payment terminals. MagicCube says this technology is already used by major acquirers and financial institutions, allowing merchants to accept card payments without deploying dedicated point-of-sale hardware. The company has previously emphasized third-party validation of its software security model as a way to meet the compliance and risk requirements typically associated with regulated payments environments.
The new funding round includes a strategic investment from Verifone, a long-established provider of payment acceptance infrastructure. MagicCube positions Verifone’s involvement as a bridge into merchant-side payments environments, where authentication, device trust, and identity controls are increasingly embedded directly into terminals and transaction flows rather than handled separately. While the companies have described the relationship as strategic, they have not disclosed specific details around joint product development, distribution, or formal integration into Verifone’s existing terminal portfolio.
MagicCube’s leadership has framed the round as a step toward applying the same trusted computing foundations used in mobile payment acceptance to a wider set of use cases. These include biometric workflows, identity verification, IoT security, and AI-driven applications running at the edge, where protecting models, credentials, and decision logic is becoming a growing concern. The company argues that software-defined trust makes it easier to deploy and update security controls across heterogeneous devices, without being locked into specific hardware supply chains.
According to MagicCube, the funding will support continued investment in research and development, expansion into new geographies, and deeper engagement with partners across payments, digital identity, and emerging device ecosystems, as it seeks to position its platform as a general-purpose trust layer for digital commerce and connected services.
The funding reflects continued convergence between payments security and identity technologies, as vendors seek to address fraud, compliance, and user authentication within a single platform. Whether MagicCube’s expansion into biometrics and identity verification results in deployed products or remains a roadmap direction will depend on subsequent disclosures and partnerships. The move comes as biometric payment authentication gains broader industry momentum, with market projections showing significant growth despite some adoption challenges.
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By the ID Tech Editorial Team
