There is no doubt that for each product or service sold payment has to be realized. Hence payment is something that has been there for thousands of years. However, technology today makes it possible for us to make payments online using digital and the internet. But the internet mode of online payment comes with its own share of risks and challenges. This is because sensitive data about the customers are moved from one end to another and before it reaches the card service provider, it might have changed a few middlemen’s hands and therefore there is a risk of data pilferage and also frauds happening on the way. There are instances of serious frauds occurring and each year millions of dollars of money of customers are lost along the way.
Could Cryptocurrency Be The Answer
There are many experts who could feel that cryptocurrencies could be the answer to protecting customer data and even totally ruling out the entire risk of frauds and online pilferage of data. There are however some serious problems with regard to compliance as far as this form of digital payments and receipts are concerned. Further, when one looks at the fascinating possibilities of token payment systems, there are reasons to believe that cryptocurrencies could be left far behind. Hence it would be interesting to find out more about future possibilities as far as this form of online payment is concerned.
What Is Token Payment System All About
Tokenized payment systems could be the answer for overcoming partially the menace and danger of online frauds when payments are made and received by the stakeholders. This is still in its early stages but we have information that it could help in making transactions safer (online transactions). This is because of the simple fact that this technology will use token based wallets instead of transmitting data in its pure form. Whenever a payment is initiated when buying something online, the proceeds of the payment, the credit card number details the primary account number of the customer and other such details will be encrypted in a randomly generated number and the same will be moved from one end to the other in a form of a token number. Hence, the intermediaries who handle the entire payment transaction end to end will be able to see only some encrypted numbers and the data and other sensitive information will be locked safely in the token wallet. It would be almost impossible for the hackers and other cyber criminals to decipher the details.
It Is Just The Beginning
While it looks quite interesting and fascinating, we need to bear a few more things in mind. This is a very new and emerging technology. It needs to be checked on various parameters. There have been a few instances where fraudsters have been able to hack the encrypted token and copy the details of the credit card vaulting and again encrypt the token and send it back through the entire transaction chain. This has to be addressed adequately and therefore there is quite a bit of work that also needs to be done going forward. But conceptually, there is little doubt that the token payment system is brilliant and its overall philosophy is beyond any question.