Fiserv is one of several fintech companies to announce the introduction of tokenization capabilities since Mastercard and Visa introduced their token payment system to complement Apple Pay.
Fiserv announced the expansion of its mobile payments solution portfolio to include tokenization capabilities via Visa Token Service (VTS) and MasterCard Digital Enablement Service (MDES). The new payment options will be available to all Fiserv-processed debit and credit issuers.
By supporting tokenization capabilities, Fiserv hopes to ensure that its financial institution clients can play an integral role in the mobile payments ecosystem. One security measure for the newly announced Apple Pay service is the use of tokens. With the Apple-Visa-Mastercard partnerships, tokenization may become a new standard in global payments.
Tokenization adds additional security to mobile and online payments by creating a digital account number, or “token”, which acts as a substitute for a consumer’s personal account number (PAN). Tokens can be used for mobile proximity payments at a physical point of sale, for mobile remote payments such as in-app purchases, and for e-commerce transactions
“As mobile payment technology becomes more accessible and convenient, consumer adoption will accelerate,” said Kevin Gregoire, president, Financial Institutions Group, Fiserv. “Fiserv is equipping our clients to meet growing consumer demand for payments from their mobile device, whether they are paying a bill, paying another person or making a purchase. Our partnerships with Visa and MasterCard to support tokenization, and our planned support of tokenization through our own Accel network, are part of our overall commitment to bringing secure and simple digital payment solutions to our clients and their customers.”
More on Visa’s token payments system.
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