Blockchain’s New Identity Paradigm Helps Reimagine Enterprise Cyber Protection

blockchain, cybersecurity, fraud prevention

In an era where cyber threats are escalating in sophistication and frequency, businesses continuing to rely on outdated cybersecurity models might as well be hiding their house keys under the doormat and leaving themselves open to intrusion.

While traditional perimeter-based cybersecurity measures and rule-based authentication methods may have cut it in the past for keeping out cybercriminals and keeping in sensitive data, many of today’s incumbent solutions are struggling to keep pace with the rise of advanced persistent threats (APTs) and a new wave of fraud tactics powered by artificial intelligence (AI).

However, the convergence of blockchain technology, digital identity solutions and AI-assisted cybersecurity is emerging as a potentially robust approach to protecting sensitive data, preventing fraud and ensuring compliance.

By leveraging decentralized ledgers for identity management and security protocols, organizations are finding themselves empowered to rethink traditional cybersecurity frameworks and mitigate risks associated with centralized data storage, identity theft and unauthorized access.

Read more: Hackers Don’t Need Keys If Companies Leave Cyber Doors Open

The Future of Enterprise Security is Decentralized and Resilient

Enterprises today operate in a high-risk digital environment where cyberattacks are not only frequent but can also be financially and reputationally devastating.

As PayTechFocus has covered, among the most damaging breaches during 2024 alone were the Change Healthcare ransomware attack that led to billions in losses, to the breached defenses at background check firm National Public Data that led to the stolen information of 2.9 billion individuals, as well as the Snowflake data breach that snowballed to include AT&T, Santander Bank, Advance Auto Parts, Ticketmaster parent company LiveNation and over 160 of the world’s largest companies.

Much of this ecosystem vulnerability can stem from centralized identity and access management (IAM) systems, which rely on passwords, single-factor authentication and large databases of user credentials. Even with traditional multi-factor authentication (MFA) and security patches, phishing attacks, credential stuffing and insider threats continue to expose enterprises to significant risks.

To address these vulnerabilities, blockchain-based identity solutions can help to provide a decentralized, essentially tamper-proof approach to security.

Blockchain-based digital identity systems enable users to own and control their identity credentials using cryptographic keys. Instead of relying on a company’s database to verify an identity, blockchain solutions store hashed identity records on a distributed ledger, allowing verification without exposing sensitive information.

Companies like Microsoft and IBM are already piloting decentralized identity solutions for secure enterprise access.

“It is essentially an adversarial game; criminals are out to make money and the [business] community needs to curtail that activity. What’s different now is that both sides are armed with some really impressive technology,” Michael Shearer, chief solutions officer at Hawk, told PayTechFocus.

Read more: Digital Identity Becomes New Currency as Companies Turn IDs into Payments Credentials

What’s Holding Enterprises Back?

With supply chains growing more interconnected, enterprises must securely verify vendors, partners and third-party access. Blockchain-based identity credentials can ensure that only authorized suppliers, contractors and logistics firms access critical systems, mitigating third-party risk and preventing supply chain cyberattacks.

As zero-trust security models gain traction, blockchain-based identity solutions provide a critical layer of authentication and verification, reducing reliance on vulnerable passwords and centralized databases.

“With the world that we live in, digital identities are becoming more used than physical driver’s licenses or physical passports,” Erika Dietrich, vice president, global fraud prevention risk services at ACI Worldwide, told PayTechFocus, adding that, “[Businesses] need to deploy cyberdefense strategies that can not only detect and prevent fraud but also enable them to authenticate and verify consumers’ digital identities in real time, protecting against account takeovers, while seamlessly integrating any updates to their account.”

Yet despite the promise of blockchain-driven digital identity, widespread enterprise adoption faces several hurdles around integration complexity, regulatory uncertainty, user adoption and education, and scalability.

Blockchain-based identity solutions must integrate with legacy IT infrastructure, which can be challenging for large enterprises, while employees and customers may resist new authentication models, necessitating extensive user education and onboarding.

And while frameworks like eIDAS 2.0 and GDPR support digital identity innovation, there is still a lack of uniform global regulations, and public blockchains can struggle with transaction throughput, which may hinder real-time identity verification for high-volume enterprises should they decide not to rely on a private blockchain.

PayTechFocus Intelligence’s 29-page report, “Leveraging AI and ML to Thwart Scammers,” a collaboration with Hawk, contains eight charts of proprietary data examining the role of machine learning and AI to help keep fraudsters from getting the upper hand.

Corpay Keeps Focus on Cross-Border and Corporate Payments Corpay Keeps Focus on Cross-Border and Corporate Payments

Corpay Keeps Focus on Cross-Border and Corporate Payments Despite Macro Turbulence

Corpay, earnings, b2b payments

As the global transportation and logistics sectors navigate economic uncertainty, rising fuel costs and increasing regulatory pressures, fleet managers are reevaluating their operational strategies.

The focus is shifting toward efficiency and cost savings, making payment and expense management a critical component of modern fleet operations. That was what Corpay executives told investors on Wednesday’s (Feb. 5) fourth quarter 2024 earnings call. And it’s good news for them.

“The only thing that has changed since our last call is that the macro has gotten a lot worse … our core businesses have remained just as strong,” CEO Ron Clarke said.

Still, a combination of FX headwinds and a weaker international currency environment clipped around $20 million from print revenue, though a favorable tax rate provided a counterbalance, he added.

Despite external pressures, Corpay’s Q4 results showcased the company’s ability to maintain stability and even drive growth in turbulent conditions. For Q4 2024, Corpay reported revenues of $1.03 billion, a 10% increase year-over-year, with organic revenue growth reaching 12%. Adjusted net income rose 18% to $383 million, while adjusted EPS climbed 21% to $5.36.

Key Growth Segments: Corporate Payments Leads the Way

Corpay’s Corporate Payments division was the standout performer, growing 26% in Q4 and 20% for the full year. This growth was fueled by strong demand for accounts payable (AP) automation and international payment solutions. The company secured a major enterprise AP client, marking its expansion beyond the mid-market segment into large-scale corporate accounts.​

“We primarily compete with banks, which control over 90% of international payment flows,” Clarke said. “But our superior technology and proprietary network give us a strong edge in this market.”

Corpay remains active in M&A, with plans to further expand its corporate payments business. The integration of GPS Capital Markets and Paymerang is well underway, and both deals are expected to add $0.50 in cash EPS accretion in 2025​.

Corpay’s Vehicle Payments segment showed mixed results, with Q4 organic revenue up 8%, improving from 4% in Q3. Growth was primarily driven by increased adoption of digital vehicle payment solutions in Brazil, where the company has been expanding aggressively. Insurance-related revenues in the region rose over 130%, and Corpay sold nearly 300,000 vehicle insurance policies in Q4 alone.

Read more: Corpay to Acquire Brazil-Based Gringo to Expand Vehicle Payments Business

The company also acquired Gringo, its second vehicle payments acquisition in Brazil, expanding into the car debts payment market.

“This gives us entry into a huge Brazil payments TAM, approximately three times the size of our toll TAM, and very early days in terms of penetration,” Clarke noted.

PayTechFocus Intelligence’s “How the World Does Digital” report surveyed 67,000 consumers across 11 different countries. It found that Brazil was far ahead of all of them — including the United States — in digital engagement. Drilling down into the results, in 2023, 66.8% of Brazilians used mobile banking apps on their phones at least once a month, and 46.8% used these apps at least weekly.

Corpay is also focusing on cross-border payments. Revenue for that segment jumped 20% year-over-year, driven by 43% sales growth in Q4. Corpay is aggressively expanding its cross-border solutions, leveraging a proprietary network that allows it to compete effectively with banks, which still control 90%+ of international payment flows.

Fluctuating fuel prices continue to be one of the most significant challenges for fleet operators. Companies are deploying fuel hedging strategies and data-driven purchasing decisions to mitigate volatility. Corpay offers solutions that provide detailed fuel pricing insights and analytics, enabling fleets to make smarter purchasing decisions and reduce overall fuel spend.

Ultimately, Corpay’s 2024 results highlight a company firing on all cylinders, with record adjusted earnings and a rapidly expanding corporate payments business. However, macroeconomic headwinds — particularly foreign exchange volatility — are expected to weigh on 2025 performance.