In an age where security threats are more prevalent than ever before, it’s important for retailers to have strategies in place which afford adequate protection against the malicious use of personal data to commit fraud.
Given that retailers now offer transactions across a variety of different platforms – from paying at a till to making an order over the internet, or even using a service like Apple Pay – one thing has become clear: the need for a type of technology called tokenisation has never been bigger and it looks set to continue to be implemented by merchants across all industries.
Tokenisation helps retailers to deliver fast, secure and engaging customer experiences. While the process itself is quite complex, the concept isn’t. Tokenisation essentially replaces the bank account or card details of a customer with a unique identifier, known as a token. This token replaces sensitive personal information and can be easily tracked across all payment types – whether the customer makes an online payment, uses a contactless POS terminal or mobile point of sale, the token remains the same.
While tokenisation offers a security advantage in that retailers don’t have to hold sensitive financial data, it’s also great for streamlining the user experience of the customer. It means customers are no longer required to identify themselves every time they commit to a transaction. This helps to speed up purchase times, improve customer service and increase overall customer satisfaction.
In addition to enjoying improved conversion rates due to a simplified payment process, tokenisation can also offer retailers a unique insight into the behaviours of their customers. Because tokens remain unique to individual customers, retailers can implement discounts, incentives and loyalty schemes automatically, regardless of whether the customer chooses to shop instore or online.
While tokenisation currently offers a secure way to receive payments and a means to track customer spending habits, its future applications are even more exciting. Age verification, identity checks for product collection, purchasing quotas and electronic health records are just some of the ways tokenisation could help transform safety, security and the ability to purchase. Put simply, it’s an all-in-one secure payment solution which actually streamlines the purchasing process – a win-win all-round.