Category: Mobile Security

Tokenization may be driving growth in mobile payments

| March 24, 2015

Visa believes that digital tokens are making consumers more comfortable with mobile payments

Tokenization is a leading driver behind the adoption of mobile payments, according to Visa. The company’s global head of mobile products, Bill Gajda, believes that the introduction of tokenization is making the mobile payments space more secure. As such, consumers are more likely to participate in mobile commerce and businesses are feeling more comfortable about protecting the information of these consumers. More platforms are expected to adopt tokenization in the coming years, with the new Samsung Pay service supporting digital tokens when it launches later this year.

Digital tokens serve as a way to protect the financial information of consumers

Tokenization is a relatively new practice in the mobile commerce space. The process involves attributing digital tokens to financial information at the time a mobile transaction is made. Most mobile payments platforms require users to link their credit or debit card information so they can be used. When a transaction occurs, a sequence of numbers is attributed to this information, which can be used to authenticate a payment. Through this process, no financial information is actually passed from consumer to merchant, making the transaction sector for all parties involved.

Mobile payments space may grow more secure through the use of digital tokens

Mobile Payments Driven ForwardVisa believes that tokenization will be a boon for the mobile payments sector, which has had a struggle with security issues over the past few years. Visa believes that more platforms will embrace tokenization as more consumers become involved in mobile payments. Apple Pay is one of the most prominent services that supports tokenization. Apple partnered with Visa in order to make use of digital tokens, which has significantly improved Apple Pay’s already considerable security features.

Samsung to use Visa’s tokenization service for its new payment platform

Samsung will also be working with Visa to make digital tokens possible. Samsung Pay is slated to launch later this year and will compete with other mobile payments services that are available on the market. The success of the platform may draw yet more attention to the use of digital tokens and encourage other companies interested in mobile commerce to make use of tokenization as well.

Consumers are still wary of mobile payments

| March 23, 2015

Report shows that consumers may not be ready to embrace mobile payments at this time

Many consumer still have reservations about mobile payments, according to a new report from Walker Sands. The report shows that mobile payments are becoming more popular, but either out of 10 consumers still have doubts about the sector. Much of this doubt is centered on security. Mobile payments platforms are not typically considered the most secure option when it comes to commerce, which is why consumers, in general, tend to avoid using their mobile devices to pay for products.

Many people prefer cash, but want to make use of a digital payment platform that offers them good features

The report shows that cash remains the most favored way for consumers in the United States to pay for products, but it is on the decline. According to the report, 59% of consumers carry less than $20 on their person. Many consumers noted that they were waiting for a secure mobile payments platform, saying that they would use such a platform if it existed. Approximately 4% of consumers said that they used Apple Pay, though 18% said that the launch of the new platform made them more interested in mobile payments.

Peer-to-peer services are becoming more popular among young consumers

Mobile Payments - consumer uncertaintyThere is also increasing demand for peer-to-peer payment services. The report shows that nearly 50% of those between the ages of 18 and 25 want to use services that allow them to send money to their friends and colleagues. Such services could become more popular if they can offer these consumers a convenient experience.

Loyalty to singular platforms remains quite low among consumers

Notably, consumers have not yet expressed loyalty for a singular mobile payments platform. Instead, consumers are likely to move from one platform to the next in order to find features that they enjoy. While some payment platforms, such as Apple Pay, have managed to acquire a great deal of support, these platforms have not found mainstream success, as consumers are less inclined to use one platform over another for any significant period of time.