Image Source: http://www.startlr.com/visa-and-mastercard-to-launch-this-year-in-russia-new-technology-of-contactless-payments/?utm_source=eNewsletterPro&utm_medium=email&utm_campaign=Millennials_Prefer_Mobile_Wallets_from_Non-Banks__14826
Contactless technology has been fast emerging of late and every contactless card supplier, being a part of the plastic card industry wants to provide the best of services to their clients. Though such contactless technology is backed by state-of-the-art security layers, fraudulence has always been prevalent and brooding in the minds of the users.
Tackling this challenge of misuse and fraudulence has undergone several cycles of consideration and after careful evaluation of multiple factors influencing the security of such contactless card technology, the two contactless card giants Visa and MasterCard, in collaboration with the National System of Payment Cards (NSPK) have come up with a revolutionizing initiative of an high-end anti-fraud technology, putting the users on a very secure platform to help them perform transactions through Apple pay, Samsung pay and Android pay.
Visa and MasterCard have proposed to introduce the tokenization technology in Russia which would allow users to make transactions through their Apple pay, Samsung pay and Android pay, using a device specific, unique and secure token or number. According to MasterCard representatives, “tokenization technology is one of today’s most important security developments because it provides the safest way of non-cash payments”.
Working of the tokenization technology:
According to the tokenization technology, the person at the kiosk may scan the token from the individual’s mobile device. This is then passed on to the respective bank as an authorization request and further processed. The greatest benefit of this technology is that the token may be device specific and retail specific eliminating all possible chances of misuse. This particular technology generates a unique token relating to a specific device, associated to a single account. For eg. A token created for contactless transactions cannot be used for online purchases.
Visa’s chief executive officer in Russia, Ekaterina Petelina, told Vedomosti daily business newspaper “This is a very effective system to combat fraud because you don’t need to secure your account information against exposure; instead, you simply make such information useless to criminals. This is a completely different way of providing security.”
This tokenization technology was first introduced by Visa and MasterCard in the U.S in 2014 after which it gradually expanded to other countries. MasterCard declared that their digital enablement services (MDES) are working aggressively in nearly 18 countries and that also have several other innovations to come up exclusively for the Russian digital commerce market.
Yaroslav Loginov, founder of the crypto-currency system, LibreMoney told “Russia’s largest bank, Sberbank, plans to offer client identification via video image processing by 2018,” “you won’t have to bring a card or phone with you. It will be enough to look at the camera and just speak a confirmation word or phrase.”
The plastic card industry is all set for a drastic transformation which would include several levels of technological development with focus on issues of arresting fraudulence and misuse of account sensitive information. With these improvements, consumers can be rest assured that their transaction information is highly safe and cannot be meddled with in any way.