American Express has announced a new security platform that should help partners to establish safer environments for customers’ mobile and online payments. Dubbed the American Express Token Service, the system replaces traditional credit card numbers with generated tokens that can be used to complete digital transactions. This allows merchants and retailers to stop storing customers’ sensitive financial data, thereby guarding against fraud.
The system also has the benefit of securing payments made with NFC-enabled devices, which will make it compatible with mobile payment systems like Apple Pay, and compliant with next year’s regulatory standards forcing merchants to adopt the technology. It comes at a time when commerce is increasingly going mobile, followed closely by fraud. In this context, a token system such as this one comes highly recommended by industry regulators, and can be used in combination with biometric security measures to create a robust security apparatus for digital payments.
American Express representatives have been discussing the new system at the Cartes Secure Connexions 2014 conference in Paris, which wraps up today.