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Helping banks overcome the fragmented mobile payment market with tokenisation

Pierre Lelievre, Marketing Communications, Vice President - Asia Pacific, Gemalto | July 3, 2015
Tokenisation will allow banks to expand their user base while evolving their mobile services solutions, empowering them to deliver a future-proof best-in-class mobile payments experience.

Security is another significant benefit that tokenisation offers. This technology converts sensitive card credentials into limited-use digital data and only stores the token data in the mobile device. Even if the device is stolen, it will be useless to the fraudsters because they will only be able to access a substitute credential which has a limited use. This allows the real card number to be protected from misuse. Tokens can also be linked to specific merchants, further reducing the risk of cross-channel fraud. The secure mobile payment ecosystem will allay the security concerns that the majority of users have when using their mobile devices for banking. This will play a critical role in accelerating the usage of mobile banking and payment services amongst consumers.  

Comprehensive Solution to Implement Tokenisation Technology

In order for banks to truly leverage on tokenisation, they will need an integrated end-to-end solution, from a mobile tokenisation gateway to the client-server architecture for provisioning and processing payment security. When deciding on their tokenisation solution, banks should look out for a solution that allows flexibility and at the same time offer a number of key capabilities and features. These include the real-time enrollment of payment cards, the homogeneous distribution to diverse devices and simplified on-boarding of business partners, as well as simplicity and choice with regards to available security models, covering management of credentials on Secure Elements, Trusted Execution Environment (TEE) and HCE-enabled handsets.

Banks are at an inflection point today as digitisation is putting up to 50 percent of their net profit at risk. Overcoming the multifaceted mobile market is becoming increasingly critical for banks as they need to respond to the shift in consumer behavior in order to create value for themselves in this digital age. Tokenisation will enable banks to capitalise on the rising mobile trend by implementing a solution that is compatible with multiple devices and networks without the need for a tamper-proof secure element to be incorporated into devices. It also provides access to millions of new customers as major smartphone manufacturers and major payment players, including Visa, MasterCard, Amex and EMVCo, continue to support this technology. Tokenisation will allow banks to expand their user base while evolving their mobile services solutions, empowering them to deliver a future-proof best-in-class mobile payments experience.

 

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