Tokenisation replaces the 16 digit card account number with a unique series of numbers called a ‘token’ that can be used for card payments in the digital world, without exposing a cardholder’s more sensitive account information.
Australia is the second country where Visa is bringing tokenization. The security feature was announced in the US in September 2014 is currently up and running there.
A white paper by UMR Strategic commissioned by Visa found that seven in 10 Australians own a smartphone and more than half are interested in making payments with their mobile device. However, 46% have stopped a purchase when shopping online because they didn’t trust a merchant with their card details.
In addition, nearly nine out of 10 Australian merchants surveyed said keeping customer credit card details secure is a high business priority, and 84%said an additional layer of security like tokenization would be a positive step.
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