Tokens use encryption to protect sensitive payment information while allowing merchants and payment service providers (PSPs) to easily store this customer data for smoother, safer transactions. This provides numerous benefits including better customer experiences, more successful transactions and improved ability to store payment and customer information.
PYMNTS Intelligence’s latest study finds that network tokens offered by major credit card networks are poised for further growth. For example, 77% of merchants not currently offering network tokens plan to roll them out. Furthermore, 92% of PSPs that already enable the technology plan to invest in further capability. Key areas that merchants and PSPs want to upgrade include digital wallet card payments, card-on-file payments and recurring payments.
That said, while enthusiasm for network tokens runs high, merchants and PSPs express concerns about service fees and costs. In fact, most merchants and PSPs identify fees as a concern, including many that identify them as their top concern. Service providers need to educate potential customers about tokenization’s full value proposition.
These are just some of the findings detailed in “The Tokenization Innovation Report: The Future of Security and Personalization,” a PYMNTS Intelligence and Mastercard collaboration. This edition examines network token use by merchants and PSPs and draws on insights from a survey of 110 merchants and 100 PSPs conducted from Aug. 5 to Sept. 4.
This report includes crucial information for merchants and PSPs looking to keep pace with the rapid advancements in tokenization. Network tokens can protect data and transactions, as well as enable advanced personalization and other features customers want. Download the report to learn more about why tokenization may be the future of cybersecurity.