Visa Europe has unveiled its plan to launch a tokenization service for the European market to enhance data protection and fraud prevention.
Tokenization technology will replace a cardholder’s credit card number with a unique series of numbers generated for each transaction, called a token, which can be used to make payments without the need of exposing sensitive account information.
Visa Europe’s new service will address the security needs of the dynamic payments industry which is moving towards smart-phones and wearable devices for payments.
The new service will be available for financial institutions from mid-April.
Visa Europe core products executive director Sandra Alzetta said: "Tokenisation is one of the most important technologies to emerge in digital payments and has the potential to start a whole new chapter in the kinds of products that are developed.
"For that reason, we’ve designed this flexible and scalable service, enabling issuers, merchants and acquirers to provide consumers with the next generation of innovative payment methods – all with the high level of security they expect."