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The benefits of tokenisation

July 18, 2019 at 12:00 PM

Tokenisation helps protect sensitive card data and reduce your PCI data security scope, which is great from a security point-of-view.

Sometimes though, it’s difficult to get excited about security stuff. Much less, excite your operations, finance or marketing colleagues about security and the value of better security to them. Don’t worry, we understand.

Below are some of the ways payments and tokensation can help each area of your business.

 

Operations

Historically you may have stored card data to perform certain tasks, such as matching refunds with sales, reserving accommodation, or releasing pre-booked tickets for collection. You can still perform all these operations using token data instead. Our system is compatible with any front-end business application interfacing with PXP Financial’s API. Preserving existing processes means you save the time, trouble and cost of expensive system changes and staff re-training.

The creation of tokens does not significantly impact transaction processing time. So, there’s minimal impact on speed of service at busy times, queue lengths and sales conversion.

PXP Financial’s tokenisation service is also available retrospectively. If you have card details stored, we can tokenise them without completing a transaction, which enables you to deliver a consistent experience to customers through consistency on the back-end.

As well as being backwards compatible, tokenisation also helps set your business up for an omni-channel future. Our tokenisation works across sales channels, geographies and sub-brands within your group. This single template helps minimise considerations and costs when expanding cross-channel or cross-border.

Tokenisation has minimal operational impact, whilst also helping to keep sensitive customer data secure.

 

Finance

The costs of a data security breach are much larger than the regulatory fines for losing customer data. There is lost revenue, productivity and ability to trade; costs relating to legal, technical and forensic advice, plus the impact on brand, reputation and trust. All of these negatively affect the bottom line. Seen in this light, the costs of implementing tokenisation (to reduce your risk exposure and PCI compliance scope) are modest compared to the costs of data compromise.

As our tokenisation service is part of a managed service, it helps you realise many kinds of other savings. It saves you time internally in keeping up-to-date with industry standard. It saves you retaining your own experts. And it saves you development costs, if you can piggy-back the work of your service provider.

The costs of implementing tokenisation are more than offset by the savings it delivers in terms of risk reduction, business efficiency and security.

 

Marketing

Tokenised data can be associated with the customer and used for subsequent transactions, irrespective of channel, country or sub-brand within your retail group.

In marketing terms, as tokens are a unique way to identify a customer across your systems, they can be used for loyalty. For example, sending an offer to a customer that has purchased online to encourage them to shop in-store.

As tokenised data serves as a proxy for the card and cardholder, it can also be analysed internally, more so than real card data in the clear. This is useful for uncovering buying patterns and trends to plan marketing activity.

It costs five to seven times more to sign up a new customer than secure additional business from an existing one. Tokenisation helps make the operational process of one-click payments and recurring billing easier and more secure, which helps with the internal business case to launch such services.

Tokenisation helps deliver marketing benefits associated with loyalty, analytics and creating a more frictionless shopping/payment experience.

 

Definition

Tokenisation replaces sensitive card data with a token, which you can use across various front-end and back-end systems instead of the real card data.

Although tokenisation simplifies the task of complying with data security requirements, many of our ANYpay customers are seeing ancillary benefits around operational, cost and marketing efficiencies. These can be as significant as the security benefits — sometimes more so.

 

How PXP Financial Can Help

Our data security solutions are secure. They are agnostic which makes things easier for you. Whatever applications you run, whatever financial institutions you work with, our solutions will integrate with them. They are also easy to deploy wherever you are in the world (many of them via remote key injection).
We build our solutions on these principles and the idea that every customer is different. Contact us for a free consultation about your particular payments needs.

 

PXP Financial

The End-to-end payment platform

PXP Financial provides a single unified payments platform to accept payments online, on mobile and at the point of sale. Powered by inhouse global acquiring, 200+ alternative payment methods & financial services, PXP processes over EUR 16 billion annually through our unified gateway.

Whatever your business needs today or tomorrow, PXP Financials’ innovative payment platform will support your business growth with all the payment services you will ever need from one source, wherever your business takes you.

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Tags: Tokenisation, Secure Payment Processing, Security

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