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HomeFEATURESVisa’s ‘token’ technology streamlines ecommerce experience

Visa’s ‘token’ technology streamlines ecommerce experience

Tokenisation enables card details to be automatically updated when a card is expired, lost or stolen.

Kiwi businesses selling online no longer need to worry about the bug bears of expired card details, thanks to a partnership between Visa and five major New Zealand payment gateways. Adyen, Bambora, Cybersource, Paystation by Trade Me, and Windcave have committed to rolling out Visa’s tokenisation technology known as ‘credential-on-file’ (COF), meaning consumers no longer need to update payments details following a card refresh.Tokenisation technology replaces card details such as account numbers and expiry dates with unique digital identifiers (‘tokens’) so that a cardholder’s sensitive information is never exposed. It’s the same technology used for face-to-face purchases where consumers tap their mobile or wearable to pay, and now online payment gateways are adopting tokenisation to lock in the security benefits and customer experience for e-commerce merchants.

Visa’s Head of Product for New Zealand and South Pacific, Riaz Nasrabadi, says the partnership makes New Zealand amongst the first countries to introduce the capability.

“It’s a major step for e-commerce security and customer experience in New Zealand – but ironically it’s very much a behind-the-scenes innovation that many consumers won’t even know has happened, because it makes their online sales experience a lot smoother,” says Nasrabadi. “If you think about online shopping websites or even subscription-based services such as Netflix where a consumer’s card details are securely saved, normally they’d have to manually update their details if they got a new card after it was lost, stolen or expired.

“That pain point has now been completely removed for the consumer – because our COF technology ensures the relevant details are updated automatically.”

A recent YouGov survey found 44% of Kiwi consumers said updating their pre-existing details are amongst the most annoying consequences of losing a card.* COF tokenisation is a win for New Zealand merchants too. The survey found that the automated process could help prevent online merchants from missing out on subscription renewals, with 19% saying they would use the manual card update as an opportunity to try out an alternative, and 13% opting to stop using a service altogether*. Tokenisation enables card details to be automatically updated when a card is expired, lost or stolen.

Learn more about the Visa Token Service at www.visa.co.nz

How does tokenisation work? 

  • Visa’s credentials-on-file tokenisation replaces card details such as account numbers and expiry dates with unique digital identifiers (‘tokens’) that are used for payment without exposing a cardholder’s sensitive information.
  • Each token is merchant-specific, so can only be used with the merchant where it is stored, removing any incentive for hackers to try to steal the account data and decreasing the risk of data breach attempts.
  • Businesses using tokenisation can ensure subscriptions or recurring payments are not interrupted if a customer’s card is expired, lost or stolen.

*Visa commissioned YouGov survey of 500 New Zealanders with a debit / credit card, July 2018

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