You may not know the meaning of "Tokenize" or, if you do, you are not very clear about what benefits it can have for your business, or if it can be applied in your sector. That is why we want to collect in this article the benefits of tokenization in payments and its different applications, which is ultimately summarized in a better customer experience and higher sales for the business, according to the guidelines set by Sipay. This technology can be applied to both online and offline commerce and for multiple business models.
We will start by explaining how tokenization works. When a person pays in a store, either physically or online with their card, there is the possibility of storing the data of said card so that they do not have to enter them in subsequent purchases or payments. To do this, a unique token associated with that card must be created, as the actual data should not be saved to avoid fraud or other dangers. The tokens created will be stored in a secure vault and can be used for future collections (always with the prior authorization of the user).
It is a very innovative and avant-garde option to collect payments for products, services or items marketed by these companies in an online format. To the point that in some cases they may be the solution to your problems. With a series of benefits that can be very beneficial to your professional interests from now on. Beyond other approaches regarding this more conventional or traditional issue.
The meaning of tokenization
This newly created concept consists when applied to data security, it is the process of replacing an element of confidential data with a non-sensitive equivalent, called a token, that does not have an extrinsic or exploitable meaning or value. While on the other hand, in the case of payment methods, from the beginning tokenization was driven by the growth of new business models that emerged with the irruption of the digital economy. The benefits that these new business models brought (increased market volume, personalized offers, experiences tailored to customer needs) were quickly translated into changes that had to be implemented in order to protect consumer data that could be exposed in a buys.
How this payment system works
In any case, it must be emphasized that the operation of tokenization is simple and, saving distances, we can summarize it in three phases:
- Provisioning (the client already owns a token linked to his PAN);
- Validation (the token is sent to the credit card network to process the transaction and this network de-tokenizes the token, obtains the PAN that it sends to the card owner's bank and receives a validation from that financial institution);
- Content (Once the validation of the transaction is received, the network re-kinizes the PAN and sends the authorization to the seller).
Advantages in its use
While on the other hand, there are also many benefits that it can offer to those responsible for this digital line of business. Among those that stand out some of those that we are going to expose you below. Among the advantages provided by this strategy are the following that we are going to contribute from now on:
- Eliminate duplication of customer data information in each payment environment.
- The tokens are not reversible so it becomes useless information for a third party to access them.
- Convenience and immediacy in transactions.
- By storing tokens and not sensitive card information, sellers are in a better position to raise their data protection standards.
- By limiting the number of systems that access payment card information, it reduces the scope of PCI DSS compliance and makes it easier to obtain certification with fewer requirements.
- It is not necessary to implement controls associated with confidential data, because the token is not considered confidential data.
- It facilitates the presence of more electronic businesses with better security standards, all operating with some of the tokenization platforms that exist.
Deposit and withdrawal methods
It is certainly an advantage. But with platforms of these characteristics these monetary operations can be carried out both en fiat currencies as in the cryptocurrencies available. Regarding the first of the formats, they are limited to several currencies: euro and US dollar, among the most relevant of all. Meeting the expectations of European users.
These movements can be made through two means of payment. On the one hand, directly through the credit and debit cards of almost all commercial brands: VISA, MasterCard ... And on the other, through bank transfers in the aforementioned digital currencies. There are no more news regarding this section.
What cryptocurrencies do these digital platforms offer?
So far, this digital platform offers more than ten digital currencies. Among which are present some of the most relevant. Allows you to do operations with stores or online businesses in Bitcoin (BTC), ETH (Ethereum) and Bitcoin Cash (BCH), among the best known.
Of course, new currencies are being added every year. Although without the intensity that other operators of these characteristics provide. It can be said that it is a good option to operate with electronic businesses with the most popular cryptocurrencies of the moment. But in some cases not with the most innovative and this is a fact to take into account.
Security systems
Since these online platforms offer a security system that must be rated as moderately acceptable and reliable. To avoid incidents in the chain of blocks. It has different levels of security to protect operations. Placing a lot of emphasis on what is the safe storage of your funds.
On the other hand, it offers an SSL encryption system to give more security in the connections. This is a factor that helps to trust the operations or transactions carried out by users or customers. To the point that it constitutes a very palpable proof of the importance of these means to give more importance to safety. Being one of the most relevant services in its current offer.
Customer service
It is one of the strengths that this new system presents in the technologies in its moneterization. To the point that we realize very early on the importance you attach to your customer relationships. Its main contribution lies in a live chat that is incorporated into your website. It attends to any kind of demands, both technical or on how to channel deposits and withdrawals of funds.
Through a tab independently it allows to get in touch very comfortably. No need to register or other additional requirements. It is a very important help with any problem we have. Its implementation on the platform is appreciated.
Another of its alternatives is represented by the traditional consultation of frequently asked questions or FAQs. Although it is not the most useful in this class of cryptocurrency operators.
As simple questions like the following:
- How to make the first deposit?
- What happens if you can't access the platform?
- What are the payment and withdrawal methods?
Another resource we can use is your email address. But we will have to wait longer for the response we demand. Nor is its international telephone line missing. It is not very operational and does not help to clarify the most common doubts by users.
Presence on social media
Very soon it is detected that a good part of the businesses or lines n line give a lot of value to social networks. With a very estimated number of very active followers in them. So it is present in many social networks. In some of the most relevant, such as Twitter and Facebook.
Its implementation on YouTube is another of the most noteworthy facts. Where it is explained how you can operate with this digital platform. They are very useful channels to follow for users with less experience in cryptocurrency operations. Therefore, it is not surprising that these moments these platforms have a very active community, especially in European territory. With a very important monitoring of its operations.
These communication channels are one of the strengths of this financial platform. With an increase year after year in the number of followers. But without reaching the level of the leading operators in the sector.
In any of the cases, it is very relevant to emphasize that these functions that we have reviewed are divided by blocks or themes so that it is easier to solve a problem that we have. There is also a guide that is designed to describe the important parts that we must know about cryptocurrencies. We can learn about Bitcoin and Ethereum, including what they are, how they work, and why they are so important in the cryptocurrency sector.