This week, two players in the payment market are teaming up to provide a solution for businesses to securely accept and ‘tokenize’ transactions from mobile devices.
When the news crossed my desk, one point I found particularly interesting is the fact the technology can ensure the cardholder data never enters the merchant’s backend system or applications. Instead, the merchant only stores ‘tokens.’
If you own or operate a small or midsize business you may have heard this term before: tokenization. This is the process of replacing critical data with symbols or ‘tokens,’ minimizing the amount of information a business keeps in its databases.
Why is this valuable? For consumers, the benefit is clear. Increased data security. For businesses this helps comply with PCI DSS (Payment Card Industry’s Data Security Standard), which is a set of policies created by Visa, MasterCard, Discover, and American Express to prevent misuse of personal cardholder information.
Today’s announcement joins together technology from Paymetric and Velocitor Solutions. Paymetric’s Data Intercept technology, which ‘tokenizes’ payment card data, now uses Velocitor’s V.Mobile solution to secure transactions from mobile devices.
This means the technology will allow businesses to accept payment from connected devices and tokenize the data directly from the solution.
For consumers, one of the big factors holding back widespread adoption of using connected devices for payments is the concern person information may not be secured. With solutions such as this, the industry is making strides to ensure data is safe.
For retailers, accepting payments via mobile devices will soon become a new channel of commerce—if it hasn’t already. But key factors such as complying with PCI DSS and heightening security of data could be critical to business.