In today’s digital, on-demand world, we have instant access to information, products and services. Digitization and digitalization has driven this change, and we are now accustomed to almost instant payments via cards, web services and apps. The development of instantaneous payments between bank accounts is therefore a natural evolution.
Real-time payments (RTP) have been proliferating globally since 1973, increasingly driven by the need for payments clearing to keep pace with today’s on-demand digital world. The success of anti-fraud measures like EMV® chip, EMV® 3-D Secure and payment tokenization to mitigate card-present and -not present fraud in-store and online, has caused fraudsters to look elsewhere for more vulnerable targets.
Designed for central banks and clearing houses to secure account-based transactions, Payment Account Tokenization is a comprehensive software solution that replaces sensitive account numbers with unique tokens and reduces the risk of fraud for transactions including direct credit, direct debit and person-to-person (P2P) payments.
Brick-and-mortar merchants are in the midst of a period of unprecedented disruption. Long-term structural trends mean that retailers must address decreasing revenues and escalating costs, while evolving the in-store experience to meet the demands of the connected consumer.
For this reason, transformative technologies such as mobile scan-and-go solutions are coming to the fore, with deployments across the world gaining momentum.
The development of smart devices and the increasing possibilities of its features has lead to a search for a new frontier for technology. The idea of wearable technology has existed in science fiction and other speculative fiction, but only recently has wearable technology became a reality this decade with the introduction of wearables such as smartwatches. The development of smartwatches has not only lead to features such as checking notifications without pulling out one’s smartphone, but also an extended mobile payment platform where they can touch their smartwatches to a payment terminal.
Tokenization is a process by which sensitive data is replaced with unique identification credentials that retain all essential information about the data without exposing said sensitive data to attacks. While traditional payment methods pass critical identification information through several points, tokenization minimizes the amount of data a business needs to keep on hand. Becoming popular with small and mid-sized businesses since it can strengthen the security of credit card and e-commerce transactions while keeping costs low, tokenization can expand beyond the world of payments.