• Visa Announces Transition to Use of Tokens Following the Success of Apple Pay



    Visa recently announced that it will be removing its 16-digit account numbers for mobile and online payments across 2015 in favor of the use of tokens, which are one time use, unique codes, thanks to Apple Pay’s successful implementation of the technology. The company didn’t provide any specific date for the transition but did suggest that tokens will begin to replace credit card numbers as the company’s partners get access to the Visa Token Service which rolled out alongside Apple Pay in October of 2014.

    Chief Executive Officer, Visa Inc., Charlie Scharf, had the following to say regarding the matter:

    Removing card account numbers from the processing and storage of payments represents one of the most innovative and promising technologies we’ve seen in decades.
    According to Visa, online transactions made with Visa Checkout are set to be tokenized this year, securing transactions for over 110 existing merchants. The service is said to grow to include “other leading device manufacturers and technology companies” beyond Apple with Apple Pay all while being supported in mobile payment apps released by Visa-partnered financial institutions in the US, Asia Pacific and Latin America.

    It seems like Apple really is delivering on their quest to change the way the mobile payment works worldwide. Especially with many long-time credible companies hopping the bandwagon and implementing support/gaining traction.

    Source: Visa (Press Release) via 9to5Mac
    This article was originally published in forum thread: Visa Announces Transition to Use of Tokens Following the Success of Apple Pay started by Akshay Masand View original post
    Comments 9 Comments
    1. buggsy2's Avatar
      buggsy2 -
      Big congratz to Tim Cook for leadership here.
    1. bigboyz's Avatar
      bigboyz -
      way more secure!
    1. psxcancer's Avatar
      psxcancer -
      I honestly have to say it's about time. I've been part of a data breach, four times within the past two years.

      All the safeguarding in the world doesn't matter if your data breach comes from Companies storing your credit card information. I am glad for Apple pay and Visa. Hopefully MasterCard will step up and switch their system too.
    1. alanjf's Avatar
      alanjf -
      Removing card account numbers from the processing and storage of payments represents one of the most innovative and promising technologies we’ve seen in decades.
      I really hate statements like this. While I agree that ApplePay is a good thing, the hiding of card info is something PayPal, for example, has been doing for well over a decade. If anything, things like ApplePay have been built upon this concept that others had brought forth over the years.
    1. SpiderManAPV's Avatar
      SpiderManAPV -
      Quote Originally Posted by alanjf View Post
      I really hate statements like this. While I agree that ApplePay is a good thing, the hiding of card info is something PayPal, for example, has been doing for well over a decade. If anything, things like ApplePay have been built upon this concept that others had brought forth over the years.
      Maybe the same concept, but a different way of doing it. I believe ApplePay was the first real token method. Not disagreeing with you so much as just saying that quote is worded badly.
    1. alanjf's Avatar
      alanjf -
      @SpidermanAPV As far as hiding card information, the concept is the same. ApplePay uses tokens & NFC and that's where it expands on that idea. The NFC is what sets it the most apart; instead of having to swipe a PayPal debit (or credit) card in a regular card reader at a store, you can do it wirelessly. But the basic idea behind it is one and the same and it's not new. This is just another way of implementing it.
    1. fleurya's Avatar
      fleurya -
      Quote Originally Posted by alanjf View Post
      I really hate statements like this. While I agree that ApplePay is a good thing, the hiding of card info is something PayPal, for example, has been doing for well over a decade. If anything, things like ApplePay have been built upon this concept that others had brought forth over the years.
      Yeah, I love how I have been able to use Paypal to buying groceries at my local supermarket, pay for meals in local restaurants, and generally buy products at my neighborhood stores and businesses for a decade now!

      oh wait...
    1. alanjf's Avatar
      alanjf -
      @fleurya Actually this has been possible for at least a decade using PayPal debit and credit cards, which are swiped/read like any other card. What makes ApplePay a bit better on this is being able to choose the payment source on the spot, whereas with PayPal you need to set source beforehand, although this can be over come by having multiple cards where each one tied to a separate payment source, which obviously isn't quite as clean. But in the end using PayPal in the situations you describe was very doable.
    1. znbl's Avatar
      znbl -
      Quote Originally Posted by fleurya View Post
      Yeah, I love how I have been able to use Paypal to buying groceries at my local supermarket, pay for meals in local restaurants, and generally buy products at my neighborhood stores and businesses for a decade now!

      oh wait...
      If you had actually bothered to do ANY sort of research WHAT SO EVER, before making such a hugely ignorant statement, you would have easily discovered the existence of PayPal debit cards (and credit cards) which operates like any other debit/check/credit card that used the source you specify for that card. I believe they are MasterCard based so it would work anywhere MC is accepted, which is pretty much everywhere (such as the places you mentioned.) Next time please at least do a Google search before making such ******* remarks.
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