Tag: visa mobile payments

Tokenization could help make mobile payments in Australia more secure for businesses and consumers

Visa has begun rolling out a new tokenization initiative in Australia. Tokenization is a relatively new trend that has begun to emerge in the mobile payments field. It involves replacing a consumer’s personal and financial information with digital tokens, which can be used to authenticate mobile transactions. These tokens add a new layer of security to mobile payments, as they do not contain financial information, which makes them a less attractive target for those that would seek to exploit such information.

Tokens bring a new layer of security to the mobile space that is difficult to break through

Digital tokens take the form of a unique, 16-digit number. This process is becoming more popular in the mobile payments market due to the risks that exist in the digital world. Over the past few years, cyber attacks against companies that support mobile commerce, and consumers that partake therein, have increased. With cyber attacks becoming more common, businesses are looking for better ways to protect themselves and their customers. Visa is one company that is offering a solution to this problem.

Stolen tokens are largely useless to hackers

Visa is making its tokenization technology available in Australia, which could help foster the growth of mobile payments in the country. Visa notes that if tokens are actually stolen by malicious parties, it cannot be used elsewhere, and tokens can be deactivated in a quick manner. Tokens are generated in and are unique to every payment environment, which means that they cannot be used on other platforms unless they are generated for that platform specifically.

Australia’s mobile payments space could experience growth due to the incorporation of token technology

Security has long been a serious problem for the mobile payments space. Because of the relative youth of this sector, security measures have not yet caught up with the risks that exist therein. Tokenization could help make mobile payments more attractive to consumers and businesses, many of whom believe that participating in mobile commerce is a risk to their financial information.

The credit card giant has now backed the smartphone payment solution that is accepted at most POS terminals.

It has now been announced that Visa is investing into LoopPay, which is a mobile wallet app that is designed to provide consumers and retailers with a mobile payment solution that is already accepted at a majority of point of sale terminals among retailers.

The LoopPay mobile app has been created to allow people to make mobile payments with smartphones.

This eliminates the need for those consumers to have to bring their plastic credit cards with them because they can use the mobile wallet within their device to pay with those cards in a digital manner, instead. The app uses a traditional setup for a smartphone based payments service, and provides the consumer with a small dongle that plugs into the device in order to allow users to be able to swipe their virtual cards when they reach the cash register to pay for their products at a retailer’s checkout counter.

In this way, the LoopPay mobile wallet doesn’t require any changes to be made to the retailer POS terminals.

To work with the LoopPay mobile payments software, retailers can simply continue to use the point of sale terminals that they already have. This helps to be able to span the gap that is currently present in the majority of smartphone based wallet services in the United States retail market.

Typically, in order for retailers to be able to receive mobile payments, they would have to change their terminals in order to accept some specific form of technology. At the same time, those that already accept certain types of smartphone friendly tech, such as NFC technology based readers, are compatible with only a small percentage of devices that are currently used by consumers.

As this service allows retailers to keep their systems and simply provides consumers with a dongle to use, this overcomes the compatibility challenges that have existed among many mobile wallet services until now. In this, Visa has already announced that it is upgrading its VisaCheckout program. Therefore, their investment into LoopPay will give the company the opportunity to make an even larger impact on the smartphone payments sector.