Tokenization is taking centre stage in the payments industry, offering organisations and their customers a way to pay in a straightforward and secure way. As more and more people move towards digital payments, the ability to offer them a streamlined purchasing experience will become critical to industry leaders.
The shift towards tokenization aligns with a growing use of digital solutions. Issuers are moving away from printing card numbers on physical cards, instead choosing to issue virtual cards and tokenize them. This provides greater security for both consumers and issuers.
At Pismo, we’ve always understood the importance of tokenization. Our solution is adapted to suit the needs of institutions looking to evolve the way they secure their transactions.
What is tokenization?
Tokenization replaces sensitive card data with a non-sensitive unique identifier or “token” that can be used in-person with NFC technology or in e-commerce using a preferred wallet. A token provides an added layer of security, ensuring that users’ card details are never exposed during payments.
Fraud prevention is really driving growth of tokenization. For each digital transaction, a unique token is generated. This means that if a merchant’s system is compromised, the token stored in that system cannot be used elsewhere. For example, if a cardholder uses their card with a tokenized streaming service, the token generated cannot be reused by another merchant.
Pismo is a facilitator in this process. As an I-TSP (Issuer Token Service Provider), we help issuers connect with payment networks to provision tokens, streamlining the process, reducing complexity and ensuring compliance with network mandates.
Our platform’s ability to offer end-to-end services is particularly valuable. From provisioning tokens on behalf of issuers to sending token data to the networks, Pismo simplifies what can be a complex and technical process.
Processing and token issuing: Pismo does both
One of Pismo’s key differentiators is our ability to combine I-TSP and processing services under one roof. Many companies in the market are forced to use separate providers for each service. This can lead to inefficiencies and integration challenges. Pismo eliminates these issues by offering a unified solution.
For instance, when using separate providers, the systems of these companies may not align perfectly, creating delays, data mismatches, and technical issues. With Pismo, issuers benefit from the integration, reducing friction that can occur when dealing with multiple vendors.
Pismo also simplifies token data management through our unique identifiers. These allow issuers to easily access and manage token information, without needing to handle sensitive PCI data directly. This reduces security risks and streamlines compliance efforts.
Another ace up our sleeves is Pismo’s built-in network-agnostic approach. Regardless of which payment network a client is dealing with they can use the same API endpoint with Pismo. This eliminates the need for issuers to maintain separate integrations for each network, reducing both development time and operational complexity.
Push provisioning is the future
Push provisioning has become the industry standard for tokenized digital payments, and Pismo fully supports this approach. Unlike manual provisioning, where cardholders need to enter their card details manually into digital wallets, push provisioning allows for a far more secure process.
With push provisioning, the process is initiated from within the issuer’s app. This means that the cardholder is validated before the token request is made. Customers no longer have to input sensitive data like card numbers or expiration dates. Instead, they can simply click a button to add their card to Apple Pay, Google Pay, or other digital wallets, and the rest happens behind the scenes.
One of the major security advantages of push provisioning is that no clear card data is ever entered by the cardholder. The process is encrypted from end to end, and all sensitive data is handled securely in the background.
Pismo enables issuers to easily adopt push provisioning, ensuring that they comply with the latest network mandates. For issuers still on a transitional journey, Pismo provides the infrastructure and expertise to facilitate that shift, keeping their payment offerings secure and up to date.
How Pismo can help
Tokenization is not just a trend—it’s becoming a mandatory feature for issuers globally. Payment networks and major digital wallet owners are pushing to eliminate manual card entry and require issuers to adopt tokenization as a standard practice.
Pismo supports issuers not only with token provisioning but also with token lifecycle management. This includes important functions like suspending a token if a card is lost or compromised. Many processors lack this capability, but Pismo’s token lifecycle support ensures that issuers can manage their tokens effectively throughout their entire lifespan (more on this in a future blog).
Pismo actively works with issuers during the certification process with networks and digital wallets. This hands-on support helps issuers navigate the often-complex requirements for certification, ensuring that they can bring tokenized services to market as quickly and efficiently as possible.
Want to know more about tokenization, and how Pismo can help? Get in touch with our team today.
