4 Reasons to use tokenisation

A token of extreme security

Tokenisation may sound complicated, but its beauty is in its simplicity.

Tokenisation substitutes a string of random numbers ─ known as a token ─ for private data, like payment account numbers. Instead of complete private account data passing through multiple systems of varying security, personal data is tokenised upon swipe, dip, or entry of credit card information online. The actual data the token references is stored in highly secure token vaults. The tokens themselves are worthless to fraudsters.

Tokenisation makes the process of accepting payments easier and more secure. Tokenisation is more than just a security technology ─ it helps create smooth payment experiences and satisfied customers. Tokenisation reduces risk from data breaches, helps foster trust with customers, minimises red tape and drives technology behind popular payment services, like mobile wallets.

Best of all, businesses reap all these benefits today.

Here are four reasons why tokenisation matters to businesses.

#1 ─ Tokenisation reduces risk from data breaches

Criminals target businesses that accept credit and debit cards because there's a wealth of intelligence in payment information. Hackers target insecure systems that contain this intelligence and sell the stolen data or use it themselves to make fraudulent purchases.

The costs to businesses are all too familiar. Ponemon Institute's Cost of a Data Breach study pegged the average cost of a data breach at $3.86 million. Ponemon's estimate for each lost or stolen record containing confidential information now stands at $148.

Tokenisation helps protect business from the negative financial impacts of a data theft. Even in the case of breach, valuable personal data simply isn't there to steal. Tokenisation can't protect your business from a data breach—but it can reduce the financial fallout from any potential breach.

#2 ─ Tokenisation helps foster trust with your customers

Consumers want safety and security, wherever they shop. In this era where fraud poses threats throughout the economy, building trust and loyalty with customers begins with keeping their payment and other personal data safe. In a 2018 CA Technologies/Frost & Sullivan study, 59% of consumers said a data breach had a negative impact on their trust in the affected company.

Beyond avoiding the worst-case scenario of a data breach, using advanced security such as tokenisation, fosters customer trust. Consumers don't want their payments data falling into the wrong hands. Demonstrating a strong commitment to the security of customer data is appreciated by consumers.

#3 ─ Tokenisation means less red tape for your business

Businesses that accept credit and debit cards need to be in compliance with the Payment Card Industry Data Security Standard (PCI DSS). Tokenisation makes achieving and maintaining compliance with industry regulations significantly easier.

Tokenisation addresses requirement set #3: protecting cardholder data at rest. PCI DSS seeks to reduce retention of sensitive data and safely govern its storage and deletion. Tokenisation satisfies this critical requirement by never letting sensitive cardholder information touch your systems in the first place.

It isn't a compliance silver bullet. But, working with a PCI-compliant vendor offers a smart approach to payment security. Leading payment technology companies offer tokenisation as part of their payment processing services. That lets you focus on growing your business while your payment partner reduces red tape to help keep your business in compliance.

#4 ─ Tokenisation drives payment innovations

The technology behind tokenisation is essential to many of the ways we buy and sell today. From secure in-store point of sale acceptance to payments on-the-go, from traditional e-commerce to a new generation of in-app payments, tokenisation makes paying with the devices easier and safer than ever.

The rising popularity of in-store payments with your customers' mobile devices features tokenisation. When consumers pay with a mobile wallet, such as Apple Pay or Google Pay, their personal credit card data is stored on their phone as a token. Additional security comes from smartphones themselves with the additional layer of biometric security and other advanced authentication measures.

Tokenisation is a cornerstone to e-commerce by making payments safer and improving user experiences—whether online, mobile or in-app.

Speak with Worldpay

Tokenisation services should be offered by your payments provider. Connect with one of Worldpay's experts to learn more about how tokenisation can help protect your business.