Tokenization is an essential enabler for a larger and more complex commerce world as the Internet of Things (IoT) propels payments to a range of new devices, says Proxama’s vice president of product marketing and product management for payments solutions.
While the initial focus and development of tokenization services were to support Apple Pay, the demand and opportunity to support a “growing range of commerce and payment models” have driven the main providers — especially Visa and Mastercard — to expand and promote their tokenization offerings, Rob Macmillan tells readers in an in-depth article now available to download from the NFC World Knowledge Centre.
‘A guide to tokenization — The essential enabler for expanding the world of commerce’ explores tokenization technology as a whole, while also taking a look at Visa and Mastercard’s recent tokenization agreement and the implications it is expected to have on the payments industry.
“Up until now, most of the new payment mechanisms such as mobile phones, wristbands or even your clothing represent a consumer making a purchase,” Macmillan writes. “If now your fridge, car or even your swimming pool are starting to make payments, then the number of payment-initiating devices could rocket.
“The payment world is really part of a larger commerce world that is evolving at a rapid rate. Tokenization is at least one key enabler for this and will continue to evolve for the payment services run by the established payment networks.”
Readers can download Macmillan’s eight-page paper, which provides a wealth of insight into the background and future potential of tokenization, free of charge from the NFC World Knowledge Centre.
• This article is part of What’s New in Payments, a 104-page special report from NFC World that explores and explains the latest payment trends and technologies. You can download the entire report here.