Visa announces the launch of its new Token Service
Visa has announced that it has launched its Token Service. The service is meant to drive innovation in the mobile commerce field while also introducing more security to digital payments. The service replaces valuable financial information with digital tokens, which have the ability to authenticate mobile transactions. Security is one of the most significant challenges facing the mobile commerce space currently and Visa has been taking steps to address this issue in recent years.
Storing financial information on a mobile device can be risky
When it comes to mobile payments, a consumer’s financial information is often stored on a mobile device. This information can be stored on a digital wallet platform or a payment service. The problem with this is that this information can be accessed whenever such a platform is exploited. Malicious groups often target mobile commerce services in order to obtain such information. Visa’s Token Service may resolve this issue by removing the need to store financial information on a mobile device completely.
Token Service removes the need to store financial information
The Token Service is designed to replace a consumer’s financial information with digital tokens. These tokens do not contain a consumer’s information, but can still be used to facilitate a mobile payment. The tokens can be stored by merchants and not just consumers as well. This means that consumers can shop at their favorite online stores and make purchases from their mobile devices without having to input any valuable financial information.
New service is meant to bring more convenience and security to the mobile commerce field
Visa’s Token Service will only be available in the U.S. until early 2015. Next year, Visa plans to introduce the service to several other countries where mobile and e-commerce are thriving. The service is designed to further improve the attractiveness of mobile shopping and payments by highlighting security and convenience. Mobile commerce has thrived due to its convenient nature, but there are relatively few security solutions that have made consumers comfortable with paying for products from their mobile devices.
MasterCard is offering a similar service with its MasterPass platform. The MasterPass application is meant to help make e-commerce more convenient to consumers, but MasterCard is not likely to try to form a direct connection with people using the app. Instead, the company is likely to continue focusing its efforts on providing services to its business partners, allowing them to connect with mobile consumers more dynamically. For MasterCard, creating something new is not the priority. The company wants to see its MasterPass service integrated into existing platforms.