Paperless PIN (also called Tangled PIN or Activation Code) is a new secure method of PIN delivery to the cardholders. During PIN generation, the system generates the following two extra values: the tangled PIN (a random set of numbers) and the key (used for obtaining a clear value for the PIN). The tangled PIN has a predefined count of digits, which is a user-defined parameter (e.g. 20 digits), and is transmitted in the card welcoming letter. Later the cardholder receives the key via text message, which can be used to “untangle” (activate) the final PIN.
The advantage of this service is the high level of security, since the final PIN does not appear in any unsecured channels. From the bank’s point of view, paperless PINs reduce delivery times and printing costs.