In the digital era, to protect the personal and financial information is a top priority. Fortunately, the tokenization is emerging as a key solution in the fight against fraud. Valeri Vanourek, vice president of digital products Discover\u00ae Global Network, explained to PYMNTS that the tokenization not only improves the security of digital payments, but also does so without adding friction to the process.<\/p>\n
Vanourek pointed out that the tokens can protect data in the event of a security breach, because they do not have any value for the scammers. \u201cIf a scammer gets a token, you will not be able to complete a transaction,\u201d he said. This protection is crucial in a world where data breaches are common and costly.<\/p>\n
Despite its benefits, there is a need for more education about the tokenization between merchants and issuers. However, many have already recognized its value as a defense-vital against data breaches. The tokenization is especially useful when cards are lost, stolen, or should be replaced. With the tokens, transactions continue without interruption, since the tokens are updated automatically, avoiding rejection of transactions and charges for late payments.<\/p>\n
Vanourek stressed that the tokens allow you to keep essential services such as public services, streaming, and delivery of food without interruptions. In addition, tokens can be linked to rich data to improve fraud prevention and risk management, using information such as driver's licenses, phones and IP addresses to confirm the identity of the user.<\/p>\n
\u201cWe're talking about data that can be used, from spending patterns to device information, essential to assess the risk,\u201d explained Vanourek. These data, which may include attributes, transactional, behavioral, geolocation and even biometric, provide greater confidence in the transaction and the consumer.<\/p>\n
Consumers are increasingly aware of the need to protect their personal data, especially after several leaks of high-profile in the last decade. A study of the Discover Global Network revealed that the security of the data has exceeded the convenience and speed as the most important factor when adopting new methods of payment.<\/p>\n
\u201cConsumers know that your personal and financial data can be stolen and used for fraudulent purposes,\u201d said Vanourek. \u201cThe more you understand the consumers of the safety and benefits of their methods of payment, the greater will be your confidence.\u201d<\/p>\n
Although it is inevitable friction in the processes of authentication, the tokenization<\/a> has minimized these interruptions. Consumers have adapted to methods such as one-time passwords, and accept a minimum level of friction if the experience is easy to use.<\/p>\n \u201cConsumers expect an experience of transaction simple,\u201d concluded Vanourek. \u201cDon't want to overcome tremendous hurdles to complete a transaction.\u201d<\/p>\n