Andre Stoorvogel, Director, Product Marketing, Rambus Payments

Pressure is building for the adoption of tokenised digital payments, a leading payments technology developer has said.

It is clear that the rapid growth of online and IoT payments, while exciting, is potentially an open goal for hackers, claimed Andre Stoorvogel, Director, Product Marketing, Rambus Payments, adding that retailers are expected to lose $130 billion through card-not-present fraud over the next five years.

“Payment tokenization has already been hugely successful in securing in-store mobile payments,” he pointed out. “But with in-store just one piece of an ever-expanding payments puzzle, there is a clear need to move towards a fully tokenized digital payments ecosystem. It has been a long-time coming, but it feels like momentum is now building. Players recognize the critical importance of bolstering the security of online commerce and enabling popular payment methods such as one-click ordering and recurring payments, without adding any additional friction into the buying experience. This is what tokenization delivers.”

Importantly, claimed Stoorvogel, tokenization technology is resonating with consumers who are increasingly focused on security and privacy: “A Mastercard study found social conversations on tokenization, and the foundational role it plays in securing payments, reached a potential audience of over 11 million people,” he added. “Could we be moving towards an end-game where consumers demand tokenization? Let’s hope so. But as connected commerce becomes ever more complex, ecosystem participants need to work closely to effectively deliver the trust and convenience that consumers demand. Strategies that enable merchants and payment service providers to streamline their tokenization initiatives to reap the benefits of advanced security and an enhanced customer experience were up for discussion at the recent MWC event.”

by Guy Matthews