Visa has partnered with New Zealand (NZ) payment service providers to launch a new technology to bolster online shopping security.
The initiative includes payment leaders Adyen, Bambora, Cybersource, Paystation by Trade Me and Windcave.
The technology, called credential-on-file (COF) tokenisation, replaces card details with unique tokens for e-commerce payments.
Accordingly, it eliminates the need to provide payment card information for online purchases, renewing subscription and for other transactions.
Being merchant-specific, each token can only be used with the business where it is stored.
Additionally, when a payment card is lost or expires, COF tokenisation allows merchants to refresh consumer payment details instantly. This eliminates the need for manual updates by the customer.
The technology is expected to reduce the threat of data breaches.
The process also automates subscription renewals, enabling local merchants to retain customers.
Visa head of product for New Zealand and South Pacific Riaz Nasrabadi said: “This commitment to drive tokenisation across the industry represents a win for New Zealand businesses, consumers, financial institutions and payments companies alike.
“The technology enhances consumers’ experience, enables retailers to retain consumer loyalty and protects all businesses from fraud.
“With the advent of open data and the creation of new experiences based on data, initiatives such as tokenisation will ensure consumer data is protected and held securely.”
Recently, Visa joined forces with First Data and Samsung to introduce a contactless payment terminal for merchants.