Andre Stoorvogel, Director, Product Marketing, Rambus Payments

The move towards real time payments must be matched by a move to embrace tokenisation in order to offset extra risk, a payments expert has claimed.

The ability to move funds quickly allows criminals to evade traditional checks like the identification of out-of-pattern activity, ACH block services and manual reviews, said Andre Stoorvogel, Director, Product Marketing, Rambus Payments.

He added that while there are various security approaches available to fight against payment fraud, tokenization has already proved successful in protecting in-store and online card payments, with all the major payment systems, digital wallets and original equipment manufacturers adopting the technology. By replacing unique sensitive information or data with a token, the risk associated with account-based fraud can be significantly reduced, fostering safe and secure RTP initiatives across the world, he argued.

“The difficulty with the rise of real time payments is that fraud loss has increased 132% in the UK since it was introduced,” he concluded. “Indirect evidence is that it leads to more fraud because there’s less time to do checks on the transactions being made. As fraud measures tighten on credit cards, the problem moves to other areas that are not so secure yet. As more and more countries move to real time payments we believe fraud will become a problem there too.”

He said Rambus offers a tokenisation platform, having started off with tokenisation for Google Pay and Apple Pay: “You’re now seeing tokenisation moving online to e-commerce where we’re seeing a strong push from the likes of Visa and Mastercard. Tokenisation is an interesting proposition for the faster payments market, more so than encryption.”

by Guy Matthews
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