Visa has implemented tokenization into its Visa Checkout online commerce service. The company announced the development at this week’s Money20/20 conference in Las Vegas.
This brings a new level of security to online transactions conducted via Visa Checkout. Now, when consumers make purchases using the platform on merchants’ websites, their card information will be encrypted into a one-time digital code, which is transmitted in place of the actual card data, and thus preventing hackers from getting access to that original data when intercepting those transmissions. Visa says it’s also working with merchants to integrate this tokenization technology into card-on-file arrangements, where customer card data is kept by merchants for recurring payments and the like.
Organizations in the payments industry are increasingly coming to recognize the importance of tokenization, and it could become all the more important as consumers’ biometric credentials become the key authentication metrics for mPayments and the like, as is the case for Apple Pay and Samsung Pay. Fujitsu recently announced a means of bringing randomized tokenization to biometric data, a technology that could also prove useful to Visa as it moves forward with its own biometric initiatives.