How To Enable Tokenization With Physical Payment Cards

The one of the main benefits and innovations of Apple Pay is that it never reveals the real card number (Primary Account Number or PAN) to the merchant's Point Of Sale (POS) terminals. Instead, Apple Pay uses static tokens provided to Apple by the payment networks and provisioned to the target iPhone when consumers add a payment card into the Apple Pay mobile wallet. The token is a piece of data, replacing the underlined card’s PAN, but which, if stolen cannot be used to obtain the underlying card number.

The vast majority of people who are still relying on normal plastic EMV chip-cards, may think that they are unable to take advantage of the latest payment security benefits associated with tokenization, which is now offered by all major card brands. Unfortunately their current EMV cards (just in 2014, 1.5 billion of them were shipped around the world) and all of the existing US based magnetic stripe cards keep ‘leaking’ unprotected PAN data to merchants in every transaction, which may be misused online if stolen. Can card issuers and payment networks offer similar ...

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