LONDON | Following last week announcement by Visa Inc, now Visa Europe also announced its plan to launch a tokenisation service customised for the needs of the European market. Tokenisation technology will be at the heart of new payment solutions to make card payments more secure and to increase the protection of card data. The new service will be available for financial institutions from mid-April 2015.
Visa Europe's Tokenization Service
The Visa tokenisation service protects customer data, replacing the payment account information found on a plastic card with a series of numbers that can be used to authorise payment without exposing actual account details. When consumers use their mobile device to make a contactless payment in a store, a token is processed, rather than their account details.
Visa Europe has developed the service to meet an increasing demand from consumers to use smartphones and wearable devices for payments.
Fight against Fraud
The service supports the continuing fight against fraud, allowing financial institutions to control the environments where the token can be used – for example, a token set up only for contactless payments cannot be used to make an online purchase. Additionally, if a mobile device is lost or stolen, a token can be easily and promptly disabled.
“Tokenisation is one of the most important technologies to emerge in digital payments and has the potential to start a whole new chapter in the kinds of products that are developed. For that reason, we’ve designed this flexible and scalable service, enabling issuers, merchants and acquirers to provide consumers with the next generation of innovative payment methods – all with the high level of security they expect.”, says Sandra Alzetta, Executive Director, Core Products for Visa Europe.
Mobile World Congress
Visa Europe spokespeople will be available to discuss the new tokenisation service at Mobile World Congress in Barcelona from March 2-5.