The online world is rapidly changing, with tokenisation, biometrics, and AI-driven detection helping to improve payment security as well as reducing fraud by up to 15%.
Tokenisation is an Emerging Technology
Tokenisation replaces someone’s sensitive data with a unique token. This is a string of randomly generated characters, and as it has no mathematical relationships, it means the token cannot just be undecipherable, but also irreversible, and useless to any parties who may access the information. Advances in tokenisation also mean that tokens can now be stored in token vaults. When payments are processed, the system uses the token information, rather than the original information, meaning sensitive data can be protected.
As tokenisation is one of the most significant and rapidly evolving technologies, it has quickly turned into a global phenomenon and is changing the landscape of online payments as we know it. Payment tokenisation has resulted in a notable increase in payment approval rates, with current statistics showing that it’s up six basis points across the world.
When tokenisation is combined with other advanced technologies, including AI and biometrics, payment security can be greatly increased.
Multi-Factor Authentication is Still Essential
Even when you break down the advanced and complex payment security methods that are in place right now, interestingly, simple methods are still some of the most effective. MFA, or multi-factor authentication, has been around for quite some time, especially for sites that facilitate both deposits and withdrawals.
PayPal is one example, but we are also seeing entertainment and gaming sites like Steam adopt extra security methods as well. As the site grew its catalogue, it allowed funds to be sent from a digital wallet. As part of this expansion, MFA became not only desirable but essential. It’s also commonplace for casinos to offer MFA as a way to protect players.
As gaming demands have grown, more and more games are being released on the market. It’s now not uncommon to see a jackpot casino offer prize drops across games that stretch beyond £500,000, either, but to accommodate these big prize drops, additional security measures have been put in place, with MFA being the biggest and most effective.
This can be through one-time passwords, email verification codes, push notifications, or even facial recognition. With Microsoft revealing from their own data that 99.9% of compromised accounts don’t have MFA, it just goes to show how, even though advanced payment protection schemes are trending, the simplest methods are also still as relevant as ever, and when used in combination with each other, they become possible to not only protect consumers but also businesses.
As a result of new and emerging payment security technology, we are also seeing businesses accept bigger payments online, which has helped contribute to the growth of the online world. Not only is it safer than ever to send big payments, but it’s convenient to do so, which is a major landmark in the realm of payment security. As time goes on, there’s no doubt that payment security is going to become an even bigger focus, but interestingly, less complex and intensive payment protection methods, like MFA, still have a big part to play,
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