In a panel discussing tokenisation, panellists Suzana Kordumova, product manager at Netcetera, Stephan Hackenberg solution sales director at Giesecke+Devrient, Matteo Gamba, head of product - global payments and fraud at Wayfair, and John Noltensmeyer CISO at Tokenex spoke on network tokenisation and what tokenisation can do for merchant payments.
The panellists examined how tokenisation is used in the e-commerce sector, with Kordumova highlighting the importance of its use for security and user value.
The pain points with network tokens were outlined by Gamba: “Net documentation coverage is not at 100%. What we've seen is that the coverage of the issuer level is not there in the 40-60% market. What we do is work with our DSPs to have them shipped to us, we place them on our behalf. We have a DSP setup, to basically externalise that complexity to reduce the burden of oversight of what we do to look at is the ability to provision. We always request that whenever we tokenize a new card, but we don't always get it back. Looking at that as a primary KPI to understand how far are we from 100% potential coverage and knowing it is not 100%, what we have been doing looking at the issuer level, determining the bad issuers, and having that conversation.”
He continued that his company has been personally modernising their materials for redundancy and performance optimisation, and from there they are able to adjust costs across multiple providers. Gamba emphasised how it is significant to have conversations with issuers to understand why tokens are not being provisioned and to analyse token performance after provisioning to identify any issues.
Hackenberg explained that employing and bonding with third-party token services providers can streamline the move to the market, otherwise financial organisations would have to integrate all their schemes separately, which means integration, certification, and maintenance.
Kordumova explained how Click-to-Pay solutions operate: “It will be representative of the solution and be able to read the memo correctly, and this should provide selecting of the card which is automatically displayed to the end users. After this, there should be a standard 3DS authentication that the base merchants need to do in order to authenticate the user. In the latest update 3DS is also part of the Click-to-Pay workflow, so when a payment 3DS is performed during Click-to-Pay you don't need to do additional authentication.
“Additionally, we see that there's approval rate improvements with Click-to-Pay, because it has more secure transactions, and when used to process the transaction there is additional data also that can be sent to issuers. Visa reported a 4% increase in approval rates, which means even though its 3DS, it will be frictionless.”
She added that they are now in process of analysing trials and deploying biometrics in the Click-to-Pay solutions to speed up the merchant payments process.
Hackenberg stated that having a one-click solution in the e-commerce space is something he would like to see, and that pushing issuer adoption and supporting the service with merchants will open up more opportunities for streamlined services and optimised customer experience.