BBVA using Visa, Mastercard tokenization to expand mobile to all markets
By using the Visa and Mastercard tokenization services, BBVA Group has developed a mobile payments platform it can deliver to all countries in which it has a presence.
Through the tokenization process, which replaces payment card numbers with a unique identification code, BBVA will connect its mobile wallet with each country's application identifiers to initiate online transactions.
The connection provides the data required for users to make tokenized mobile transactions from smartphones through the BBVA banking app.
“We want to be the first ones to provide new digital payment features to the customers in our markets, and this is only possible with the designs developed using this platform," Alfredo Sanz, BBVA’s product owner for payment solutions, said in a Tuesday press release. "A global approach to creating and developing products has become an integral part of our work philosophy at BBVA.”
The platform includes a module that integrates with the banking app and is dedicated to securely storing data in the device and communicating with a contactless point-of-sale terminal.
Customers in Peru can already use the mobile payment platform, which Madrid-based BBVA plans to deploy in other markets in the coming months.
Instead of relying on local platforms to deliver this functionality to each market, BBVA says it developed the single platform to provide services directly and quickly across all markets.
Because tokenization is already in use in mobile payment platforms like Apple Pay and Google Pay, BBVA views its new platform as a key piece of its future payments strategy.
“The trend in payment mechanisms is moving toward the tokenization of credit cards," Sanz said. "This is being driven by companies like Visa and Mastercard, who are providing new digital use cases."
BBVA plans to go further with its platform to cover all payment methods and develop new experiences for its customers, such as allowing e-commerce providers like Netflix and Amazon to request tokens for transactions in the future, Sanz added.
“We are betting on tokenization as the way forward because it enhances data and transaction security, which can help us reduce fraud while also fostering customer trust in the new solutions,” he said.