Diving into tokenisation: How can this secure and seamless payment experience benefit you?
By Frederic Frizzarin, head of pre-sales, Ingenico Enterprise Retail
As the customer experience moves increasingly online, convenience is becoming the utmost priority. Consumers are accustomed to next day delivery and ordering from their armchairs – and they’re not keen to compromise on these benefits.
When today’s consumer ventures in-store, they are less happy to queue or wait for a slow transaction to complete than ever before. So much so, that they can be completely put off if they have to fish out a card or plug in their PIN. The advent of Apple and Samsung Pay has done little to help this phenomenon, with customers’ devices memorising payment details for them.
As a result, retailers are now tasked with providing a frictionless experience if they want to remain competitive and ensure conversions in this fast-paced modern world. What’s more, as digital payments systems have developed, so too have data regulations, adding another consideration to retailers’ plates. The system needs to be data-secure, but without sacrificing seamlessness.
Ensuring customer security is essential to prevent retailers from having to deal with unnecessary chargebacks and refunds, as well as reducing the risk of a potentially catastrophic data leak. It sounds a lot, but thankfully this isn’t something retailers have to face alone. That’s where the right payments provider can help.
More and more retailers are reaping the benefits of tokenisation to satisfy this seamless-but-still-secure dichotomy. Let’s take a closer look at how tokenisation functions, the benefits it can provide and how retailers can implement it.
So, what is tokenisation?
In a nutshell, tokenisation is a system which enables the customer to save their details with a retailer for later use. This means that in future, anytime they want to buy something with your business, their payment details will already be stored thus making the checkout process much smoother.
From the customer side, they’ll see this as a “remember me” button on the webpage into which they’ve inputted their payment details. Behind the scenes, Ingenico will save this raw payment data on secured servers, scramble the real details into a code, and send the “token” to the retailer. The retailer then links the token to the customer’s profile so that, when it comes to the next purchase, the customer does not need to enter their card details again.
Tokenisation isn’t limited to the desktop; it can also enable the seamless interaction of an omnichannel shopping experience. For example, should a customer buy something in-store, but then phone a call centre to make a return, the call centre will be able to track and refund their purchase by using the token generated during the in-store transaction. Or, for a click and collect solution, tokenisation can enable a store to match up a customer with their online purchase by scanning their card details.
As a result, tokenisation can help retailers implement stronger fraud management by enabling them to better recognise genuine customers, as well as allowing them to undertake customer analysis across channels.
How can tokenisation benefit your business?
We’ve already seen how tokenisation allows retailers to store customer details online securely and enable speedy one-click checkouts. Another advantage is the data insights it provides, which can help retailers gain extra insight on their customers and adjust their operations to suit. This data can help retailers source the origin and ending of the payment journey for example or track the percentage of online vs in-store sales.
Additionally, utilising tokenisation can enable retailers to implement recurring payments and/or subscriptions, so that customers don’t have to continue to order something they want to buy repeatedly. It also plays an important role in loyalty programmes and rewards to consumers – all the valuable information gained from tokenisation helps retailers to personalise the consumer experience.
The next stage is how to implement this. By partnering with a provider with the right expertise in delivering payments processing, including tokenisation, in-store, online, via omnichannel solutions it means that they know and can assist retailers in knowing what customers need, as well as how to scale.
Taking advantage of this means retailers can provide a payment’s experience across channels that is fast and secure and gives customers the ease of use to make the checkout experience as quick and easy as possible. It can also improve customer loyalty, incentivising customers to continue shopping with the same retailers, using tokenisation to provide a smoother, more intuitive customer experience.
Frederic Frizzarin, Head of Pre-Sales, Ingenico Enterprise Retail
Frederic has over 20 years’ experience in the IT and Telecoms industry and has spent the last 11 years working in payments at Ingenico Group where he started originally as a Solutions Manager, before moving into the Pre-Sales Manager role, and more recently Head of Pre-Sales. Frederic is adept at leading and managing complex solution sales within Tier 1 & Tier 2 UK Retail markets. In his role, his key responsibilities include identifying needs, developing appropriate solutions, defining value strategies, preparing proposals, and managing bid responses.
About Ingenico Group
Ingenico Group (Euronext: FR0000125346 – ING) is the global leader in seamless payment, providing smart, trusted and secure solutions to empower commerce across all channels, in-store, online and mobile. With the world’s largest payment acceptance network, we deliver secure payment solutions with a local, national and international scope. We are the trusted world-class partner for financial institutions and retailers, from small merchants to several of the world’s best known global brands. Our solutions enable merchants to simplify payment and deliver their brand promise.
At Enterprise Retail, we serve the needs of retailers, hospitality, petrol, transport, parking and vending operators – with omnichannel payment solutions. Building on our expertise and local operations, we understand more about their industries’ challenges and opportunities than anyone. We proactively design flawless solutions that help our clients grow their business.