As of late there has been an anecdotal rise globally in credit card information theft. With online merchants and retailers being privileged to their customers payment information, they have become a primary target for cyber criminals.
To combat this, American Express (AMEX) has introduced the ‘American Express Token Service’. This is a suite of solutions which are designed to enable card-issuing partners to create safer online payment options for their customers.
Traditional account numbers and card details can now be replaced with unique ‘tokens’. AMEX is hoping that this system will be used in lieu of customers entering their card and account details when purchasing projects online, in apps and in-store using Near Field Communication (NFC) enabled devices.
‘We believe our payments network is a tremendous asset to American Express – one that will allow us to offer our customers new features and technologies to meet their evolving spending needs,’ said Paul Fabara, president, global banking and global network business, American Express. ‘As we move ahead, we are excited to bring these new capabilities to our customers and look forward to continuing to serve them.’
AMEX will be rolling out the solution globally in 2015. On the face of it many might consider this to be a step back for payments innovation, however the added level of security that token technology can provide might just prove to be a critical component in ensuring a safe digital payments platform. OCM.
Source: American Express
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