×

Tokenisation – in the cloud and around the world

By Sandra Alzetta, Executive Director Digital Solutions • Visa

May 18, 2016

With the launch of Android Pay in the UK, Sandra Alzetta looks at the enabling payment technologies – the token service. And, its most recent innovation – device-based cloud.

It’s now a full year since the Visa Europe Payment Token Service (VEPTS) went live for our UK client banks, allowing them to start live proving ahead of Apple Pay’s debut in the UK in July 2015. One year later and we’ve made tremendous progress. Issuers representing 95% of Visa’s volume in the UK now use VEPTS to make Visa with Apple Pay available to their consumers. And, since the initial launch, it’s been fascinating to see the emerging behaviours of cardholders as they encounter this new way to pay with their digitised Visa cards. The vast majority of the face-to-face payments are, of course, domestic. But it’s also clear that our token users have the confidence to make full use of Visa’s growing contactless acceptance base globally when they are travelling.

Tokenisation – in the cloud and around the world

To date, UK issued Visa payment tokens have been used to make contactless transactions in 57 different countries around the world, with Australia, Poland, Spain, Republic of Ireland and France at the top of the chart.

In April, we enhanced our token service to support tokenised cloud-based payments. That means VEPTS now enables our issuers to make tokenised payments available to their customers who use eligible Android OS devices. And we are thrilled that the launch of Visa with Android Pay in Europe is the first manifestation of this. In partnership with Google, we are offering a new type of token – device-based cloud – whereby the token sits on the device’s operating system for NFC payments and on the cloud for in-app purchases. That means that consumers using Visa with Android Pay will be able to enjoy the security and convenience of making payments quickly and easily whether they are tapping their device on a POS terminal or shopping on-line on their device.

Tokenisation enables Visa and our issuers to work with new partners. Together, this means exciting new products and cutting-edge innovation that provide the ability to distribute different tokens pointing to the same payment account to specific devices or merchants in an easy and secure manner. As payments increasingly move from plastic to digital, and new entrants join traditional stakeholders in payments, Visa’s mission is to ensure that every Internet-connected device, appliance or wearable, can become a secure place for commerce. We believe tokenisation will be a key component to this evolution. The launch, in partnership with Google, is an important step towards this goal.

Share this post

Like this post

Related Articles

Profit optimisation; good for banks and consumers

April 12, 2016

A 2016 study Visa Consulting undertook into one of our client’s UK debit card programmes found unrealised revenues of a staggering £11million per annum. This discovery was not an isolated example.

Andrew Cherry Read More

What is Payment Tokenisation?

August 10, 2016

Visa’s Tokenisation technology is enabling Europe's payments industry to create a new generation of digital payment experiences while protecting consumers’ sensitive information from fraud

Inma Anglada Read More

Working together for friction-free shopping

November 05, 2015

There is one dilemma that online retailers the world over share in common: the constant battle between convenience and security.

Peter Bayley Read More

Purchasing cards: Improving the purchasing process for your organisation

July 07, 2016

A daily order of fresh fruit for a school, a £100,000 vehicle and 18,000 timesheets don’t appear to have much in common. In fact, they are all procured and paid for by Leeds City Council as it meets the frontline needs of its citizens. England’s second largest metro council is now using Visa purchasing cards to save money on such transaction. Given the current austerity challenge facing the public sector, it’s a welcome boost.

Simon Thompson Read More

Changing Fraud Landscape Leads to New Partners

April 25, 2016

Visa Europe has always had a strong relationship with traditional law enforcement agencies. Today, we are now exploring broader ways to engage with not only other public authorities but also with the private sector. All with the aim of helping everyone become more effective when dealing with criminals targeting Visa products.

Debbie GrantPiet Lakeman Read More

The “Digit”-isation of Payments

November 12, 2015

Although the music industry is an easy “go-to” for digital case studies, it’s often the best way to bring concepts to life when painting a picture of the seismic shifts we’re currently seeing in payments and banking.

Jonathan Vaux Read More