Card schemes, whether that be for payment, identity or transport applications, are often implemented without token management solutions. To ensure that issuers get the most out of their token-based projects, choosing a token management platform which provides the capability to add value, now and in the future, is a logical decision. To kick-start the blog, I would therefore like to share my top five reasons why issuers should use a token management system.
1. Reduces cost
Once dispatched, tokens should remain in circulation until the card or mobile device is no longer required or it reaches its expiry date. When carrying out the provisioning of new services and application updates using a token management system, there is no need to re-issue a new card, experience downtime of services or incur new set up or issuance costs. Post-issuance personalization therefore provides cost savings as administration, paperwork, packing and distribution costs are all reduced. Good for the bottom line and good for the environment!
2. Minimizes risk
By using a token management system, changes to an end-user’s personal details can be made post-issuance, either ‘over-the-air’ (OTA) to mobile devices or via reader terminals for smart cards. This enables updates to service benefits, access rights and privileges to be made immediately once the token is deployed into the network. With mobile devices these changes can be made in real-time, minimizing the risk of interim misuse and increasing the overall security for end-users and issuers alike.
For application providers, a secure management system allows each service operator to confidently access its applications on the token in order to make the relevant updates. As multiple applications are often stored on the card or mobile device, issuers can securely carry out updates specific to its service offering without interfering with other applications.
3. Simplifies operations
Simple operations are essential to the efficient work flow of any business. Token management solutions enable the centralized management of data related to the card or mobile device, end-user and the applications, thereby enabling secure and streamlined communications. Intuitive software interfaces also mean that the solution is easy to use!
4. Secure long-term investment and ROI
Businesses need to ensure that any investment provides long-term ROI. By implementing a token management solution, the overall system becomes flexible enough to meet future market demands. Using a neutral technology also allows systems to seamlessly integrate with legacy and future infrastructures so that upcoming developments can be seamlessly accommodated. Regardless of today’s requirements, a flexible platform enables the integration of tomorrow’s technical advancements, without the need for complete infrastructure changes. The migration from contact EMV to contactless, and then mobile NFC, is a great example of one application embracing the fast moving technology.
Data generated by a token management solution can also be used to help issuers understand how end-users are engaging with, and activating, an application. This is valuable information which allows service providers to develop new functionality and updates in line with customer requirements. Making effective use of this data will deliver genuine ROI.
5. Enhances customer experience
Token management solutions also allow end-users to personalize their daily application requirements to increase customer convenience and in the medium to long-term, increase customer loyalty. Added to that, post-issuance capability reduces the customer’s inconvenience and involvement in issuer admin processes for reissues, reinstating PINs etc.
Overall, token management solutions add value – and in today’s fast paced and competitive market – this is a must for all smart token issuers!