Credit card fraud is a pressing issue for consumers, merchants, banks and card providers, costing a total of $32 billion in 2021 alone, according to research by PYMNTS Intelligence. This number is expected to swell to $38.5 billion by 2027, primarily fueled by an increased reliance on online shopping.

A card management system has always been a critical plank supporting the security around issuers’ payment card products and services. Yet as new payment tools and channels become available, its range of functionality needs to expand. In order for platforms to be able to support their growth and business, both for today and tomorrow, banks need to focus on developing technology solutions - including around tokenisation.

Tokenisation is the process by which payment account information is replaced by an alternate value called a token. A token in this case is a secure identifier in the form of a unique string of numbers, generated from a primary account number (PAN). Tokenised payments are considered more secure because the PANs themselves are not transmitted during the transaction.

Tokenisation has paved the way for developing the user experience by improving and making payments smoother, seamless and secured. It does this by safeguarding payments across mobile virtual wallets, as well as in-app, in-store and online payments. It can also support new forms of payments and channels, such as wearables and other devices connected to the Internet of Things.

In addition, tokenisation platforms can help payment service providers and merchants to reduce the cost associated with their Payment Card Industry Data Security Standard (PCI DSS) certification outlays by decreasing the number of systems having access to card numbers.

There is a further benefit in the ability to access new business opportunities. Because customer data can now be consolidated, instead of fragmented across different payment platforms, it is now easier to analyse purchasing behaviour in order to gain valuable customer insights.

In fact, tokenisation is becoming a must. It is important to note, however, that some established banks can feel locked-in by their own legacy platforms, as they have limited capabilities to implement card tokens. For banks struggling to implement tokenisation, HPS offers a simple card management system called PowerCARD, which incorporates a tokenisation service. The platform is reinforced by PCI-DSS-certified infrastructure: the benefit of which is that systems surrounding PowerCARD don't need to be PCI certified.

To know more about HPS platform, please contact sales@hps-worldwide.com.