2factor is primarily an encryption technology licensing business -- the company sells its technology to OEMs. The core technology is called Real Privacy Management (RPM).
It works by calculating symmetric private keys (i.e., it doesn't use a public/private key pair). Each party in a transaction has a private key, which it presents to a trusted intermediary. The pair of keys defines a series of encryption keys, to be used in sequence.
2factor says the benefits are: