During a recent panel discussion on tokenisation, experts Suzana Kordumova, product manager at Netcetera; Stephan Hackenberg, solution sales director at Giesecke+Devrient; Matteo Gamba, head of global payments and fraud at Wayfair; and John Noltensmeyer, CISO at Tokenex, shared insights on network tokenisation and its implications for merchant payments.
The panel explored the application of tokenisation in e-commerce, with Kordumova emphasizing its critical role in enhancing security and improving user value.
Gamba addressed the challenges associated with network tokens, noting that documentation coverage is currently not at 100%. He explained, “We’ve found that issuer-level coverage in the 40-60% range poses issues. We collaborate with our third-party service providers to manage this complexity, allowing us to focus on our provisioning capabilities. While we always request data when we tokenize a new card, we don’t always receive it, making it essential to track our progress towards achieving complete coverage and engaging with issuers to identify problematic ones.”
He also mentioned his company’s modernization efforts aimed at improving redundancy and performance, which enable cost adjustments across various providers. Gamba highlighted the importance of communicating with issuers to understand the reasons behind the lack of token provisioning and to analyze token performance post-provisioning for any potential issues.
Hackenberg pointed out that partnering with third-party token service providers can facilitate market entry, as it alleviates the burden of integrating, certifying, and maintaining individual schemes for financial organizations.
Kordumova provided an overview of Click-to-Pay solutions, explaining that it streamlines card selection for users while ensuring adherence to standard 3D Secure (3DS) authentication processes. “With the latest updates, 3DS is integrated into the Click-to-Pay workflow, meaning no additional authentication is required once the payment 3DS has been completed.”
She also noted improvements in approval rates, attributing a reported 4% increase to the enhanced security of Click-to-Pay transactions, which can also relay additional data to issuers, ultimately leading to more frictionless experiences.
Furthermore, she discussed ongoing trials aimed at incorporating biometrics into Click-to-Pay solutions to expedite the merchant payment process.
Hackenberg expressed a vision for a one-click solution in e-commerce, highlighting that fostering issuer adoption while supporting merchants could create more opportunities for streamlined services and an optimized customer experience.