Visa confirms April launch for tokens in EU, and 2015 for Australia

Credit card providers Visa and MasterCard have confirmed they will roll out their tokenisation technology in Australia at some point in 2015 while Visa said the service will launch in Europe by mid-April.

Visa Europe on Tuesday said banks will be able to able to use its new tokenisation service from mid-April, which lays the groundwork for mobile and contactless payments like Apple Pay.

The method substitutes the 16 digit primary account number on cards with a token — a series of numbers — that can be used to authorise a payment without exposing actual account details.

Visa points out that to prevent fraud, it can limit a token’s use to contactless payments, which would prevent it from being used to authorise an online payment. It would be an improvement on chip and PIN or EMV cards, which helped reduce fraud at the terminal but was less effective at preventing online fraud and indeed was seen as the reason for an increase in online fraud in markets EMV was launched in.

The token resides on a user’s device and can be revoked and replaced if a device is stolen or lost.

Visa Australia announced yesterday that the technology would be available for Australian banks to use at some stage in 2015.

Visa, MasterCard and American Express along with dozens of banks in the US have supported Apple Pay for some months, allowing owners of the iPhone 6 to make contactless payments via the device’s NFC chip in combination with the Touch ID fingerprint reader to authorise it.

Once Apple launches Apple Watch this April, owners will also be able to use the device to make contactless Pay payments.

Samsung is planning to enter the space too via its recent acquisition of payments startup LoopPay for the US market. Unlike Apple Pay, LoopPay’s system doesn’t require an NFC upgrade at card readers and instead uses its Magnetic Secure Transmission (MST), which also support many more devices than Apple’s current lineup. But some analysts have said MST will eventually be made redundant as banks move away from magnetic stripe technology.

MasterCard told Fairfax yesterday that its MasterCard Digital Enablement Service is available to Australian customers and that it expects take up to happen throughout 2015.

The tokenisation service validates the transaction and then maps out its path from the token to the original card number and onwards to the issuer for authorization.

The service is available to merchants with compatible contactless terminals or apps with of in-app purchases.

This article is brought to you by Enex TestLab, content directors for CSO Australia.

Upcoming IT Security Events

March 3rd, March 5th, March 9th 2015

Read more: Buyer Beware: Five Cybersecurity Consumer Tips for the Holiday Season

Join CSO for the day@#csoperspectives and hear from @kimzetter @LeviathanSec

3 International Keynote speakers, 36 Key IT Security Industry Speaker, 21 Exhibitors, Security Analysts and many more.. Register today

Dont miss one of the biggest IT Security events in ANZ (registration is free, but seats are limited)

Join the CSO newsletter!

Error: Please check your email address.

Tags online fraudvisabankingLoopPay’s systemmobile bankingmastercardtokenisation technologysecurtyApple Payamerican express

More about American ExpressAppleCSOEnex TestLabindeedIT SecurityNFCSamsungVisa

Show Comments

Featured Whitepapers

Editor's Recommendations

Solution Centres

Stories by Liam Tung

Latest Videos

  • 150x50

    CSO Webinar: Will your data protection strategy be enough when disaster strikes?

    Speakers: - Paul O’Connor, Engagement leader - Performance Audit Group, Victorian Auditor-General’s Office (VAGO) - Nigel Phair, Managing Director, Centre for Internet Safety - Joshua Stenhouse, Technical Evangelist, Zerto - Anthony Caruana, CSO MC & Moderator

    Play Video

  • 150x50

    CSO Webinar: The Human Factor - Your people are your biggest security weakness

    ​Speakers: David Lacey, Researcher and former CISO Royal Mail David Turner - Global Risk Management Expert Mark Guntrip - Group Manager, Email Protection, Proofpoint

    Play Video

  • 150x50

    CSO Webinar: Current ransomware defences are failing – but machine learning can drive a more proactive solution

    Speakers • Ty Miller, Director, Threat Intelligence • Mark Gregory, Leader, Network Engineering Research Group, RMIT • Jeff Lanza, Retired FBI Agent (USA) • Andy Solterbeck, VP Asia Pacific, Cylance • David Braue, CSO MC/Moderator What to expect: ​Hear from industry experts on the local and global ransomware threat landscape. Explore a new approach to dealing with ransomware using machine-learning techniques and by thinking about the problem in a fundamentally different way. Apply techniques for gathering insight into ransomware behaviour and find out what elements must go into a truly effective ransomware defence. Get a first-hand look at how ransomware actually works in practice, and how machine-learning techniques can pick up on its activities long before your employees do.

    Play Video

  • 150x50

    CSO Webinar: Get real about metadata to avoid a false sense of security

    Speakers: • Anthony Caruana – CSO MC and moderator • Ian Farquhar, Worldwide Virtual Security Team Lead, Gigamon • John Lindsay, Former CTO, iiNet • Skeeve Stevens, Futurist, Future Sumo • David Vaile - Vice chair of APF, Co-Convenor of the Cyberspace Law And Policy Community, UNSW Law Faculty This webinar covers: - A 101 on metadata - what it is and how to use it - Insight into a typical attack, what happens and what we would find when looking into the metadata - How to collect metadata, use this to detect attacks and get greater insight into how you can use this to protect your organisation - Learn how much raw data and metadata to retain and how long for - Get a reality check on how you're using your metadata and if this is enough to secure your organisation

    Play Video

  • 150x50

    CSO Webinar: How banking trojans work and how you can stop them

    CSO Webinar: How banking trojans work and how you can stop them Featuring: • John Baird, Director of Global Technology Production, Deutsche Bank • Samantha Macleod, GM Cyber Security, ME Bank • Sherrod DeGrippo, Director of Emerging Threats, Proofpoint (USA)

    Play Video

More videos

Blog Posts

Market Place