🔐 What is EMV tokenization, and how does it work in 💳 Payments?
Let’s dive into the details of the 𝗘𝗠𝗩 𝗧𝗼𝗸𝗲𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 process:
EMV stands for Europay, Mastercard, and Visa, the three companies that originally developed the standard. It's a global standard for credit and debit card payments based on chip card technology.
Let's get on with an EMV tokenization definition:
EMV Tokenization, in particular, is extremely valuable in a context where we use an ever-increasing number of wallets supporting multiple channels and payment use cases.
The same credit card can have as many tokens as the end-user has enabled devices - such as smartphones and wearables, and wallets like OEM-Pays.
Besides, as EMV tokenization is omnichannel, it can be used for in-store, in-app, or online payments. It all depends on the individual usage scenario.
There's more.
Tokens simplify life-cycle management because they can be suspended or deleted for a particular usage or device without impacting other tokens in use – they are entirely autonomous.
EMV Tokenization converts sensitive cardholder information into a unique token or digital identifier that can be securely deployed into different devices or stored in the cloud.
The token does not expose any actual account details. The cardholder does not know any details about the virtual account number.
Card credentials are secured and stored inside a vault, outside the device, and away from risk.
For every transaction, the token must be coupled with a cryptogram. Otherwise, it is useless.
This combination adds another layer of security and is also required for any payment types, including proximity and e-commerce.
Let's go a little deeper.
𝗛𝗼𝘄 𝗘𝗠𝗩 𝘁𝗼𝗸𝗲𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝘄𝗼𝗿𝗸𝘀:
When the end-user digitizes his payment card, the tokenization platform converts the primary account number or PAN into EMV Tokens deployed on different wallets and eMerchants.
STEP 1️⃣ - When the end-user performs a payment online, in-store or in-app, the merchant provides the token and related cryptogram as part of the authorization request to the network.
STEP 2️⃣ - Then, the Tokenization Platform verifies the transaction's validity and checks that it is the correct token of the right wallet or eMerchant.
STEP 3️⃣ - It then uses the token vault to convert it back to the primary account number (PAN) and recalculate the related cryptogram before requesting transaction authorization from the issuer.
I highly recommend reading the complete source article by
@thalesgroup for more interesting info on this topic:
thalesgroup.com/en/markets/d…