An "arms race in code" has led to an improvement in payment account security that actually lives up to the term "revolutionary." It involves the use of a code that can produce a different number for each transaction, making it so that stealing account numbers is pointless. Called "tokenization," the idea has powered Apple Pay and Android Pay, and is poised to sweep through the rest of the payments industry.
Stolen credit card numbers have always been a problem with payment systems. In the early days, when everything was done on paper, there seemed to be no solution. Once everything was computerized, consumers and merchants both hoped that a fix was on the horizon, but it turned out to be a long time in coming. Now, with tokenization, it has finally arrived.
What Changed that Allowed Tokenization to be Developed in Earnest?
The big change that makes a solution possible, it turns out, wasn't done just with security in mind. Instead, it was meant to foster new methods of collaboration and competition between financial institutions. New protocols were developed for sharing information between banks and other fintech players, and these allowed app makers and others to develop new technologies. One of these new technologies is tokenization.
Is Tokenization Revolutionary in Ways Other than Security?
Yes. It is not monopolized by the major credit card providers or banks, but instead, can be done by any number of token providers. These include stores, websites, app providers, and more. This decentralizes the payment power structure and puts pressure on the big players to stay competitive. It also allows for a much wider range of applications.
Keeping up with mobile payments, tokenization, and other advancements is easy when you use mBeaconSAM and mBeaconPAY solutions from Netclearance. They ship with embedded hardware security elements which makes instant tokenization a breeze. Contact us today to learn more about how we can help your business come to the forefront.