COMPLIANCE & REGULATION: TOKENISATION
In banks we trust...
G+D’s Jukka Yliuntinen believes banks could become the gatekeepers to our most valuable data, giving consumers ease of use and peace of mind when it comes to payments security. Its TokenCockpit is one solution that takes them closer to it For payment powerhouse Giesecke + Devrient (G+D), striking a balance between securing payments and maintaining the slick and easy transaction experience that consumers have come to expect, is a daily preoccupation.
Its focus recently has been on returning power to the people through its Token Cockpit solution, which is aimed at giving them 360-degree visibility and control over the disparate payment methods they have stored with providers of online retail goods, entertainment and services, in today’s increasingly e-commerce and subscription-based economy. The company’s head of digital payment solutions, Jukka Yliuntinen, believes banks have an opportunity to steal a march on their competitors by using solutions like Token Cockpit, thanks to the trust these major institutions have built with consumers over centuries. G+D has, in fact, grown up with many of those institutions. Since 1852, it’s been protecting their and their customers’ physical and digital security with technologies that millions of people worldwide use daily to pay by cash, card or smartphone, and interact with smart systems as well when accessing their identity documents for travelling. We asked him to expand on his ideas... www.fintechf.com
THE FINTECH MAGAZINE: Can we start by asking how customer expectations around digital payments and banking have changed in recent years? JUKKA YLIUNTINEN: We’re all very familiar now with having digital means to do whatever we want to do, including payments, largely driven by our mobile phones, which you could say provide a certain standard for everything in terms of convenience of accessing services and immediacy. That sets the bar and it’s still accelerating now – it’s almost unbelievable, if you look back five years, to see how things have developed. Of course, in this we’re talking about the digital natives, but then there are a lot of people who are not actually that savvy… I guess we would call them digital migrants, who need to learn a lot and try to keep up with the pace. The key point, for everybody, is perceiving that their digital payments are secure, which is where technology providers like us, the issuing banks and the whole financial network, come in, making online payments easy amidst phishing attacks and consumers’ need for reassurance that sites they want to purchase from are credible. But there are changes happening, which is something we need to address from both a technology and user experience point of view.
TFM: What role does tokenisation play in that customer experience? JY: People shouldn’t need to worry about whether there is a tokenisation technology, because all they want to do is buy something, and the payment is the necessary evil in between. How this technically happens is really important to us, but hidden from the consumer. The 16-digit PAN number on every credit or debit card is the origin of everything, and tokenisation is basically making digital surrogates of that. Consumers can have as many as they want and keep them in different digital wallets, like Apple Pay and Google Pay, or with merchant A and B, and then manage them dynamically. If they lose their phone, they can disable that token, but all the other tokens, and their original card, still work. So there are a lot of benefits. In terms of consumer experience, one good example is e-commerce. If someone wants to buy something from a web shop, they store their card details there and, with tokenisation, that information is automatically updated. If their real card expires, and they get a new one, the old information remains on the online merchant site but is automatically updated in the back-end system, which means, when they want to buy next time, their payments continue automatically, without re-entering their details. Issue 20 | TheFintechMagazine
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