Payment tokenization
How Paynetics adds value:
secure digital payments for the mobile
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Introduction
Our payment tokenization solutions bring transactions to the mobile phone and help reduce fraud in digital transfers. For each transaction sensitive details are replaced by dynamic components to secure the transmitted information. By replacing the standard primary account number (PAN) with dynamically encrypted elements, payment tokenization also provides faster check-out experience and ultimately more options for merchants to accept payments.
We support both Android and Apple phones. For Android OS we use our proprietary technology, which is built on the basis of Mastercard Digital Enablement Service (MDES) protocol. MDES helps transform any connected device into a commerce device to make and receive payments. The MDES platform enables secure payments to take place for contactless and in-app payments on mobile. All Mastercard transactions are made with industry-standard EMV-level security, and are protected using standards-based payment tokens. For iOS we support Apple Pay.
Mobile
Payment cards directly on the mobile, for both iOS and Android
Secure
Reduced fraud and faster checkout
Versatile
An integral part of eWallets
some of our clients
How does payment tokenization work?
Payment tokenization involves the process of replacing a card’s primary account number (PAN)—the 16-digit number on the plastic card—with a unique alternate dynamic card number, or “token.” Detaching the PAN form the transaction data significantly increases security but it also creates new ways of using the payment card.
Tokens can be used for mobile point-of-sale transactions, in-app purchases or online purchases. Tokenization is behind the popular Apple Pay and Google Pay products.
Why payment tokenization is important
The phone has become the hub of our daily life – it enables everything from social media to investments. Payments are following the same trend. We have already seen contactless penetration grow and limits increase. But if the same feature exists on a mobile, why continue to have plastic cards? As consumers realise how easy mobile payments are to adopt and the broader barriers around digital banking are broken down, the likes of plastic cards will become a collector's item and coins will, ultimately, disappear.
Payment tokenization brings fraud prevention to a new level. In today’s retail environment, transaction security has become key. Card schemes, along with processors, issuer and acquirers work closely together to improve the payment landscape and payment tokenization is a crucial part of the process.
Therefore, any new card proposition for the consumer market needs to include the option to digitise the card and allow users to pay by phone.
What role can Paynetics play in payment tokenization?
Paynetics provides a one stop payment tokenization solution, combining backend processing and card issuance. At the backend, we securely tokenize payment details. We then store card data in our secure card vault, allowing clients to protect customer data and transact against multiple payment services — without card data ever touching other servers.
As an issuer, our cards are by definition “tokenizable” – both for iOS and Android. So when we issue cards for our partners, they do not need to deal with any other party - we provide an off-the-shelf product, ready to be used. This empowers our partners to focus on offering frictionless payment experience to their customers and spend more time in developing their value proposition.
From a business perspective, our tokenized cards drive innovation and reduce risk. With the lower transaction risk, authorization declines are also reduced, significantly reducing friction and supporting trade. With so many ways to pay by mobile device or store credentials, tokenization drives the different payment and makes them easier and safer than ever.
Payment tokenization and eWallet
As eWallet solutions are becoming increasingly popular as they offer a superior user experience and reduce transaction costs for retailers. Over the years they evolved from close loop systems to a more open architecture. Today, consumer expectations have grown. With the advent of neo banks and proliferation of mobile banking, consumers require full payment capabilities. This means that wallets need to incorporate payment tokenization to allow Tap to Pay functionality.
With the help of tokenization, eWallets effectively remove inputting payment card information from the process when making online (and offline) transactions. It has become a more secure way to pay, as no actual payment data is used to process the transaction. In-person transactions are also more secure. It not only reduces the risk of losing cash or a payment card, but also eliminates the threat of skimming.
Paynetics supports wallets in two ways – it is able to offer a ready-to-install payment tokenization solution for third party wallets and at the same time it can make available its digital wallet platform on a white label basis. Read more about our eWallet.
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