A brief history of tokenization
When new types of payment transactions come along, they tend to start small. Next, they build a solid foundation of operations. Finally, they ramp up quickly, as merchants and consumers start to adopt them. Before you know it, a technology that was once cutting edge is mainstream.
Just as the IoT, blockchain and AI, tokenization is still an emerging technology. And we are only beginning to explore its full potential.
While tokenization has been around for a number of years, it has recently gained a foothold within the likes of Apple Pay, Google Pay, and Samsung Pay. At the moment, the number of tokenized transactions is still nominal. However, this is expected to change as card providers roll out their own payment network tokens. The practice is becoming more popular among acquiring banks and merchants too. This means it will be fundamentally integrated into digital commerce, from point-of-sale to smart device purchases.
So, if we will be seeing more tokenization, does that mean the IT behind it will have to become more complicated? Will it be harder to get a singular view of customers’ devices, locations and experiences? And what will it mean for security?
One token to rule them all
That’s where we come in. CyberSource Token Management Service adds a unifying layer on top of all these tokens. This allows different tokens to coexist, securely, in a single payment environment. You can think of it as an omni-token. In addition to making life easier for your IT team, CyberSource Token Management Service is built to enable new payment experiences as they come online. It also gives you a full view of the shopping experience, by linking customer identifiers to payment cards. This opens up exciting new possibilities for loyalty and marketing programs. And the kind of great experiences that keep customers coming back.
Do more, better, with Visa Token Service
Now, our newest integration is set to benefit your business in a number of new ways.
Cardholder lifecycle management: When it comes to recurring payments or other card-on-file situations, it is possible that your customer’s experience will be disrupted when they use a new card. But this doesn’t have to be the case. With network tokenization, payment cards are updated seamlessly, thus creating a smooth path for ongoing authorisations.
Detailed view of the customer: With network tokenization, you can have a far more detailed view of how your customers behave, which means you can keep track of their purchase behavior across specific devices, improve fraud detection, and personalise your marketing and loyalty programmes so that they perform even better.
Checkout customisation: Our service also lets you show card art at checkout, point-of-sale terminals and in online and mobile environments. Showing card art at checkout helps ensure that shoppers can view and select the right payment card. This can lead to increased purchase conversion rates.
Banking app integration: You will be able to engage with shoppers via issuers’ mobile banking apps as well. When customers connect their cards to merchants within banking apps, checking out becomes a whole lot easier.
Is your business ready for tokenization?
At the moment, tokenized transactions represent just a small part of the landscape. But this is all set to change over the next few years. Soon, digitised commerce will be helping merchants like you in a number of ways. For instance, it will help you make transactions safer, drive more completed purchases and revenue, and gain deeper customer insights and make payment experiences even better.
The CyberSource Token Management Service can help you navigate this transition. Not only this, it can help you bring together different tokens, and make things easier for your IT team.
Ready to learn more about how you can get ahead with our Token Management Service? Discover how it can make all the difference to your business and customers at cybersource.com/tokenisation.
About Nate Morgan
Nate Morgan, Senior Director, Product Management, CyberSource, has over 16 years of experience in the Payments industry. He has been leading the Product team responsible for the CyberSource Payment Security Solutions since 2012. The Payment Security products include Secure Acceptance, Payment Tokenization and account on file services which allow merchants to manage payments securely without handling payment data, thus reducing security risk and simplifying compliance efforts while optimising payment success.
About CyberSource
CyberSource is a global, modular payment management platform built on secure Visa infrastructure, with the insights of a USD 427 billion global processing network. It helps businesses enhance their customer experience, grow revenue, and mitigate risk. For more information, visit cybersource.com
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