Eight out of 10 Americans have a strong interest in using connected devices to make purchases, with a keen eye toward security and data concerns. Meanwhile, Visa confirms it has signed 13 new partners to participate in its token service provider (TSP) program, as the payments industry shifts from plastic to digital and broader access to new standards, such as tokenization, are needed.
With demand expected to increase for payments to be embedded into a growing number of devices, services and experiences, Visa has built out a global network of partners to offer secure, digital payment token services and ensure that regardless of form factor, an Internet-of-Things (IoT) device, appliance, wearable or beyond, can become a more secure place for commerce.
The newest Visa partners share a desire to advance digital and device-based payments, and represent all major regions of the globe:
• Global: FitPay, Infosys, Rambus
• Asia Pacific/India: Mahindra Comviva, PayCraft
• Central Europe, Middle East & Africa: Digiseq, FOO, Pri-Num, Seglan
• Latin America & the Caribbean: HST, Prosa, VeriTran, YellowPepper
Visa first announced its token service provider program in October 2016 with initial partners Giesecke+Devrient (G+D), Gemalto and Inside Secure. Since then, G+D, FitPay, Infosys, Inside Secure, and Pri-Num, have been Visa Ready-qualified and begun integrations of Visa technology with partners. The Visa Ready Program provides structure and clarity to allow partners to quickly introduce devices, software, and solutions that can initiate or accept Visa payments.
Visa’s token service provider program gives technology companies a standards-based approach and access to Visa’s broad network of tools and services, including the Visa Token Service, as well as integration, development and marketing support. The program also helps expand the market for tokenization to other companies as they develop new and secure digital payment services and promotes consistency envisioned in the EMVCo token standards.
Tokenization is a payment security technology that replaces cardholder information, such as account numbers and expiration dates, with a unique digital identifier (a “token”) that can be used for payment without exposing a cardholder’s more sensitive account information.
The new Visa/PYMNTS study, “How We Will Pay,” reveals 75% of consumers have at least one connected device, in addition to their smartphones, computers or tablets. About 83% recognize those devices as saving time and reducing friction when making purchases – subsequently creating an unattended checkout experience, regardless of device or platform.
This seamless purchase experience is of interest to all respondents, with auto-pay at the pump and in-store topping the list at 40%.
“How We Will Pay” Study Fast Facts
• Connected device ownership is an increasing trend. The average consumer owns 4.4 connected devices including game consoles (47%), activity trackers (41%), smartwatches (15%), voice-controlled assistants (14%), connected thermostats (9%) and virtual reality headsets (7%).
• Consumers with more connected devices make more purchases. Additionally, connected consumers makes more purchases across more product categories than those with just one connected device, with apparel and footwear leading the way.
• Buying things, using a connected device is widespread. In 11 out of 19 product categories ranging from healthcare to accessories to food, 50% or more of the consumers studied made online purchases through a device within a week of the study. Top three categories included travel services, household repair and entertainment.
Banks and Payment Networks Help Ease Trust and Security Concerns
The study also showed that as speed and convenience continue to drive adoption of connected devices, consumers still place high value on trust and security. Importantly, the more connected a consumer is the greater their concern is about their financial safety. When asked, more than 75% of respondents cited ‘data privacy,’ while 69% cited ‘order verification and accuracy.’
Respondents also place a greater trust in banks and networks to enable payment via connected devices. Over 65% cited card issuers and bankcard networks as the institutions they trust most to enable those experiences, over retail channels, social networks and mobile device manufacturers.
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