The importance of the invisible security behind an online transaction

E-commerce is constantly evolving, with consumers expressing new demands and the industry revealing new opportunities that touch on all aspects of the payment flow, primarily on security and the consumer experience. Globally, the digital payments sector is projected to reach $13.91 tn by 2026.

New simplified payment methods appear regularly, but it is the invisible security measures, like tokenization, that deserve our attention. Tokenization offers benefits not only to consumers but also extends its advantages to merchants and all participants engaged in digital payment procedures. It is the differentiating technology that reinforces consumers’ trust in e-commerce platforms and digital payment methods. At the same time, it demonstrates merchants’ and payment processors’ commitment to protect customer data and to enable seamless payment journeys for the consumers.

Thanks to the heightened security, consumers feel more confident to keep their payment data with the merchants where they frequently shop. That simplifies and streamlines the checkout flow, eliminating the necessity to repeatedly input payment details. Recurring billing and subscription services become more secure, encouraging the consumers to authorize automated billing without the need for manual input during each billing cycle.

The life-cycle management feature guarantees that tokenized credentials remain up-to-date. In cases of a lost or stolen card, consumers don’t need to update their payment details across all the merchants where they shop. Instead, tokenization systems seamlessly assosiate the new card with the existing token, ensuring a smooth payment experience. 

Network tokenization is a growing and compelling trend in the ongoing evolution of e-commerce bearing substantial impact on security, checkout efficiency, standardization and especially, consumer trust. Currently, card networks are actively promoting the adoption of network tokenization by introducing financial incentives for processing tokenized transactions.

Acquirers who choose not to adopt will face performance fees for PAN-approved Authorizations.

This indicates that now is the time for the payment ecosystem to welcome technologies of this kind. The interconnection of issuers and acquirers with card network token services, enabling them to facilitate token-initiated transactions, presents a substantial advantage.

Accepting the advantages of tokenization will make your business flow smoother and more progressive. We will gladly provide you with guidance on understanding this technology and its potential to strengthen the customer trust.