It is extremely satisfying to see how far mobile payments have come in the last two years. The OEM Pays are battling for market share and increasing their footprints around the world. Banks are bringing own brand wallets to market. Tokenization is being standardized.
All of this follows years of issues around business models and routes to market and the progress we have made would have seemed a pipe dream just five years ago. Although many of us would not have admitted that at the time.
Success and progress, though, brings new challenges to light.
Simplifying Tokenization for Banks and Payment Schemes
As the mobile payments ecosystem matures, new technologies are achieving prominence and new relationships need to be formed. Tokenization is a good example.
Now a security requirement for paying by smartphone, banks are faced with the challenge of implementing and managing tokenization. Not so arduous when the issuer is only connecting to one payment scheme’s token service provider (TSP) service to issue digital cards to one of the ‘OEM Pays’. But with each new scheme integration, the challenge is compounded and a complex web of connections is created.
Currently, and for the foreseeable future, a standard interface to connect to the schemes’ TSPs has not been defined. So, each scheme has its own requirements, specifications and interfaces. As well, specifications are updated regularly so banks are required to constantly maintain their systems to stay connected to the schemes; this takes time, investment and knowledge that many banks do not have.
It is also in the schemes’ interests to do what they can to bring banks on board as quickly as possible and minimize the complexity of integration so that they can sell their tokenization services. This complexity gets in the way.
A Simple Solution
Our experts have been working to minimize the pain for banks. Issuers can now manage the whole process through a single platform. Even better, they can let us worry about the updates to ensure alignment with the schemes’ latest requirements. This leaves banks able to focus on the important things, like delivering the best services to their customers.
Want to learn more about tokenization? Watch our video and check out our eBooks.
Interested in how our new platform – Rambus Bell ID Token Gateway – can help you to simplify tokenization? Take a look…