Tokenisation replaces 16-digit card account numbers with a unique series of numbers (a “token”) that can be used for card payments in the digital world, without exposing a cardholder’s more sensitive account information.
A major benefit of the system is that it renders payment card data meaningless to hackers
In a statement published yesterday, Visa did not name a date for its likely deployment of the technology, but said it’s working with bank and merchant partners to roll out the service by the end of the year.
It launched a similar tokenisation scheme in the USA, linked to the Apple Pay system, in October last year.
Users are able wave an iPhone in front of a wireless reader and complete the transaction with a fingerprint.
Rival card outfit MasterCard in the US has also indicated it has plans to introduce tokenisation, but its Australian plans have yet to be fully enunciated.
Stephen Karpin, Visa country manager for A/NZ and South Pacific, yesterday said: “We expect the smartphone to be at the centre of the Australian payment experience this year, both in-store and online, and the challenge for the industry is to be ready.
“Tokenisation will not only accelerate the move to mobile payments in Australia, but also provide a secure foundation for previously unimagined ways to pay. In the future, any Internet-connected device could become a secure way to make payments,” Karpin said.
A UMR Strategic white paper commissioned by Visa found that seven in 10 Australians own a smartphone and more than half of these are interested in making payments with their mobile device.
However, 46 per cent say they have stopped a purchase when shopping online because they didn’t trust a merchant with their card details.
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