Building a Fraud-free Payments Landscape with Tokenization

Prevent data misuse and usher in safer digital payments with tokenization

With real-time payment systems gaining ground, the need to ensure the security of digital payments has come into the spotlight. As new payment methods such as IoT-enabled payments become mainstream, the safe and secure conduct of digital payments will assume paramount importance. In this scenario, tokenization is fast emerging as the silver bullet to fix the vulnerabilities in online payment processes.

Successful tokenization implementation will, however, require a thorough evaluation of the various approaches – in-house, outsourced, or a combination of both – and identifying the right approach depending on the size and scope of operations of individual banks. The decision on whether to build the solution in-house or opt for a third-party solution or adopt a hybrid approach of building some components in-house while outsourcing others will require banks to consider the following key solution parameters:

• Ability to embed into existing applications
• Flexibility to connect with multiple processes
• Change implementation and customization
• Total cost of ownership