Mobile payment software on supported devices will leverage Tokens to initiate transactions, eliminating the use of the card number within the transaction flow (from the merchant to the Acquirer and the Network). The Tokens are generated by the wallet provider and are stored either in the secure element or a host cloud. Both methods of token storage provide a high level of security. Authentication on the device is required (either biometric or pin based) for initiating the transaction and further secures against the possibility of fraudulent transactions being conducted on stolen devices.
On the acquiring side, merchants may also be eligible for transaction protection with the TransArmor® or Data Vault solutions. This protects all transactions – not just those from mobile payment transactions – with data encryption and tokenization throughout the payment journey.