Re: Ron Black on the importance of tokenization for mobile payments
And then it's just some pilots, which we already have pilots planned and underway with some customers, but we won't tell you about those right away, but it's later in the year. And most importantly, its revenue and profit, which we hope to have as early as the second half and obviously in 2018.
Android tokenization in the cloud has been available for a long time.
May 2015 Android Pay is all about tokenization;
At launch, Android Pay will work in more than 700,000 store locations, although many of them have long accepted Google Wallet, including McDonald's, Macy's, and Whole Foods. The new payments platform will also be integrated into more than 1,000 apps, like Lyft, Domino's, and Etsy, Google said.
"Mobile payments has been a big priority for Google for a while,” a Google representative told Ars in a briefing earlier this week. To drive that point home, Android Pay will be available on all phones running KitKat or higher that also have NFC chips. A Google spokesperson said that seven out of 10 Android phones in use today have NFC capabilities.
Tokenization is the process of replacing essential credit card credentials — the 16-digit primary account number (PAN), for instance — with a substitute value. Called a token PAN or digitized PAN (DPAN), the token protects the real card number from theft and misuse. Payment tokenization adds a cryptogram to the mix. The cryptogram contains unique authentication data generated by the smartphone device. It demonstrates to the card network that the device and the card being used are genuine and not a vehicle for intercepted or cloned credentials. Moreover, the tokens transmitted from the point of sale (POS) can only be tied back to sensitive information kept on highly secure servers maintained by the token service provider (TSP). Samsung Pay currently utilizes the tokenization services offered by the global payment networks, which are available to all respective card association members, although third-party TSP integration is also supported, as well as TSPs independently owned/operated by card issuers themselves. Identity and Verification (ID&V) and token assurance
In addition to supporting the authorization decision by the card issuer, the token assurance level indicates to merchants, acquirers, and processors the present degree of confidence in the payment token to PAN-cardholderdevice binding. It is determined by the outcome of the ID&V steps conducted at the time the token is issued. An issuer’s chosen ID&V methods can range from no ID&V to a combination of user-supplied data, which can include billing address, device ID and location, and various communication channels—3D secure login, mobile banking, federated login, and one-time password (OTP). OTP is the most common ID&V channel. Samsung Pay currently supports OTP via SMS and email, call center, and app-to-app channels. http://developer.samsung.com/tech-insights/pay/tokenization