Tokenization is a method of protecting payment card information by substituting the card’s number with a unique alphanumeric identifier, generated using proprietary algorithms.
The unique identifier, or token, is then used for sending the transaction to the card’s payment network, where it is decrypted and the transaction authorized. The actual card number is stored in a secure vault (with the payment processor or bank) and does not reside on the merchant’s or Samsung’s systems.
Tokenization is being used to reduce security risks inherent in the collection and transfer of highly sensitive data between merchants and the card’s payment network.
Tokenized data is not mathematically reversible and is useless unless you have the original key used to create the token, limiting the chance of your payment information being stolen or compromised.
Several major banks in the U.S. now support the use of a smartphone to withdraw cash from an ATM — many by way of Near Field Communication (NFC) technology — instead of requiring customers to use a bank card.
One of the early adopters, Bank of America, said this week it currently supports cardless technology at 2,800 of its ATMs.
Samsung Pay to support cards from new partners.
From the release:
￼Samsung is expanding the partnership ecosystem for Samsung Pay, announcing support in the coming months for cards issued by Chase, PNC Bank, TD Bank, SunTrust, Fifth Third Bank, First Hawaiian, Key Bank, Silicon Valley Bank, Security Service Federal Credit Union, Navy Federal Credit Union, Virginia Credit Union, Associated Bank, Randolph Brooks Federal Credit Union and People’s United Bank. Starting next year, Samsung Pay will work with Discover.
They are also working with the Blackhawk Network to add gift cards for dining, shopping and groceries to the system. The news comes in conjunction with Money20/20, a fintech conference running this week.