Tokenization can now be considered an essential enabler for expanding the commerce world, says Rob Macmillan from Proxama, as the promise of the Internet of Things continues to drive the growth of payment-enabled devices.
“The growth of payments models is now driving new standards and applications for tokenization to protect payment data,” Macmillan writes, moving beyond ecommerce and mobile transactions to new verticals including in-vehicle payments.
Laying out the key steps in the development of tokenization, the article explains how tokenization works within the card, digital and mobile payments ecosystems and examines the role of EMVCo in promoting interoperability and standards for payment protection.
Macmillan then looks in more detail at tokenization in HCE cloud-based payments and discusses the implications of Visa and Mastercard’s reciprocal tokenization agreement before identifying the opportunities presented by connected commerce and the Internet of Things.
This article has been written by Rob Macmillan, Proxama’s vice president for product marketing and product management for payments solutions. It forms part of NFC World’s What’s New in Payments report and has been sponsored by Proxama.
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This item is part of What's New in Payments.