Future considerations for tokenization

by: Brandon Kuehl

Tokenization, or the replacement of sensitive payment data with a unique identifier called a token that cannot be mathematically reversed, has a number of implications for financial institutions (FIs) that issue credit and debit cards.

In a recent white paper, “U.S. Participates in the Global Fight Against Card Fraud,” TMG Product Manager Brandon Bogler and I explore those implications and offer insight on how credit unions and community banks are implementing tokenization – and, specifically, Apple Pay – for the protection of digital payment data.

In my last blog,  I featured an excerpt from the paper on taking the first steps toward implementing tokenization to supplement EMV in fraud prevention. Below I’ve included another excerpt, specifically looking at future considerations for tokenization.

  • Down the road, as tokenization develops into a more ubiquitous technology, issuers will want to think through two specific business decisions related to tokenization:
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