When it comes to building exceptional payment experiences, it can feel like there’s a lot to juggle. Consumers, regardless of whether they’re shopping online or in-person expect effortless, secure transactions across devices and payment methods.
Now, more than ever before, consumers expect a unified commerce experience. This means they are recognized in every channel during their payment journey and receive a consistent experience across all points of interaction. An example of this is someone who wants to use loyalty rewards to make a purchase in-app, and then pick the item up in-store.
In the wake of COVID-19, consumers and businesses alike expect a digitally enabled experience. A recent study from Visa found that 78% of global consumers have adjusted how they pay for items due to intensified safety
Andre Machicao, SVP, Global Head of Product, Cybersource
concerns, and 70% of consumershave used a new shopping or payment method for the first time since the start of the pandemic.
In this environment, tokenization strategies are more critical and relevant than ever, and there are many considerations for merchants and service providers seeking to capitalize on these trends and meet the consumer demands for digital experiences.
Unlocking the power of tokenization
Tokenization is a central capability for enabling cohesive consumer experiences and helping to fight against fraud. At its core, tokenization replaces a cardholder’s 16-digit Visa account number with a secure identifier that protects the underlying card number from fraudsters. With tokenization, the primary account number is not transmitted and the technology helps protect businesses from a data breach and enables them to better manage their PCI DSS security compliance.
While security remains an essential element of tokenization, there are a multitude of additional use cases, including:
Reevaluate your tokenization strategy
Embracing tokenization is imperative to navigating the current business environment. Before you begin, here are six questions to ask yourself and your team in order to evaluate your tokenization strategy.
Addressing these questions and developing your token strategy accordingly will ensure your business is positioned to maintain security and minimize operational costs, while growing and thriving.
Tokenization is the lynchpin in not only enabling these digital experiences, but in also meeting the growing consumer expectation for unified commerce.