March 27, 2014
If you’re new to tokenization, it’s important to gain some understanding in order to appreciate how Loop will be utilizing this technology to bring mobile pay to the masses. They recently shared a whitepaper with us.
In his white paper, George Wallner, head of technology innovation at Loop, explains that, Tokenization is an alternative security technology that converts the traditional card data, including the Primary Account Number (PAN), into a token. The token is just a number, whose only function is to point to the original card data, which is stored in a secure host called the 'Token Vault.' Once the transaction is complete, the token is then cancelled.
The concept makes sense. Instead of vulnerably handing all that sensitive information to merchants, each transaction is issued a unique, one-time token that is created, used, and cancelled once the transaction is complete.
With any alternative solution, there are immediate questions – Is it secu ...