Mobile payments are projected to expand by ~35\% by 2017. Key concerns around security and ease of use are also getting addressed with this surge in demand. Adoption trend is already demonstrated since launch of ApplePay last year, which has successfully addressed both the concerns. Considering this surge in demand and need to address the security concerns EMVCo Tokenization standard is rolled out in March 2014. Tokenization is at the core to address the consumer concerns around security as Tokenization implementation ensures that CardNumber does not flow through the transaction.
As the mobile payment and wallet landscape evolves we anticipate multiple tokenization channel requirements which will require Banks and Issuers to consider the benefits of being their own TSP (Tokenization Service Provider) mainly to achieve flexibility to customize, optimized cost structure and continue to operation in current operating environment (with or without issuer processor).
As per this EMVCo standard, a new entity called Token Service Provider (TSP) manages a token vault, provisioning new tokens, managing PAN to token mapping, enforcing token domain rules and de-tokenizing during an authorization transaction, among other functions. A Token Requestor (TR), representing a mobile wallet, digital wallet or a card-on-file (CoF) merchant can request for tokens in lieu of a PAN. Any time after the token is issued, TR can initiate a payment transaction using just the token. This setup satisfactorily avoids cross-channel fraud in e-commerce and mobile payment environments.
VirtusaPolaris solution accelerator – vToken (~40\% time to market improvement through vToken Solution accelerator)
Issuing banks and Issuer processors who are considering building their own in-house EMVCo based tokenization system need not have to start from scratch. VirtusaPolaris presents vToken, an end-to-end solution accelerator.
vToken comprises of the following:
- Administration console for onboarding issuers, onboarding token requestors and managing rules that govern the issuer.
- Services for token generation, issuance & provisioning, de-tokenization, identification & verification, lifecycle management, token domain restriction controls, status validation & device validation.
- Simulators for ecosystem participants like mobile wallet, point of sale device, payment network and issuer processor.
- A complete demonstration of a generic TSP in action working in tandem with all participant simulators.
- 18+ years of experience delivering solutions in Payments space
- ~40\% reduced time to market enabled by vToken accelerator
- Proven experience on delivering Tokenization solution on EMVCo Standards
- Strong Mobile Payments practice ensuring greater business and technical coverage
- Enables organization to incorporate their custom business requirements as compare to COTS product