Tokens, safer than cards
Payment by connected and intelligent objects will be possible thanks to tokenisation: Inside the object there is a “secured amount”, in other words the token, connected directly to a payment card. When the object needs to make a payment, it uses this secured amount to trigger the purchase process, guaranteeing its reliability. This approach has many advantages.
To date, registration and then payment on an e-commerce site requires several actions and information to the customer, rendering the process complex and associated with high abandonment rates. Moreover, the users’ payment data is distributed across several platforms (from those of the retailer, to those of the payment system), with a consequent increase in data security risks.
With tokenisation, consumers can manage the life cycle of each of their tokens and revoke it or limit it from a temporal point of view, for example by setting deadlines, or by setting limits on the amount. If a token is stolen, it cannot be used by third parties to carry out a financial transaction. Tokenisation is already a reality, on the consumer side, when it comes to contactless payments made through smartphones, the service models linked to the Internet of Things still remain to be implemented.
The new system thus offers consumers a better way of managing their payment tools, as well as greater transparency and security.The purchases made by objects can be configured to send “push” notifications in real time to the consumer and can be monitored via an app. Thus, even if the payment becomes invisible, the user never loses control.