Token Service Provider for Mobile Payments · Token Service Provider for Mobile Payments Naomi...

Token Service Provider for Mobile Payments

Naomi Lurie | Marketing Director, Gemalto Mobile Financial Services Smart Card Alliance, Orlando, April 6 2016

Paymentindustryisadaptingtodigitaltransformation

Thechallengeis:howtosecureandmanagepaymentcredentialsastheyproliferateacrossdevicesanddatabases?

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Tokenswillbeusedtosecurelydistributepaymentcredentialswhilemaintaininginteroperabilitywithexistingcardinfrastructure

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Token#1

PAN

Token#2Token#4

Token#3

Token#5

Token#8

Token#6

Token#7

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Three mobile phone giants have all launched mobile

wallets

And 50 issuers have launched their own HCE-based wallets

ISSUER WALLETS

HCE

EMVCoPaymentTokenizationFrameworkFeb2014

Usingtokensfordigitalpayments

PaymentTokensaresurrogatevaluesthatreplacethePrimaryAccountNumber(PAN)inthepaymentsecosystem

ThepurposeofthePaymentTokensisto:Minimizeunauthorizeduseofcardholderaccountdata

Reducecross-channelfraudforcard-not-presentandemergingtransactionenvironments

ThePaymentTokenislimitedtouseinaspecificdomain,suchastoaspecificmerchantorchannel(presentmentmode)

PaymentTokensaregeneratedwithinaBINrangethathasbeendesignatedasaTokenBINRangeandflaggedaccordinglyinallappropriateBINtablesPaymentTokensmustnothavethesamevalueasorconflictwitharealPAN

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TheroleoftheTokenServiceProvider(TSP)AccordingtoEMVCo

TokenGeneration:TSPhasatokenvaulttomaintainthemappingbetweenaPANandaPaymentTokenandaTokenRequestorTSPestablishestheTokenAssuranceLeveltoindicatetheconfidencelevelofthePaymentTokentoPAN/Cardholderbinding(duringenrollment)

TokenProcessing:TSPverifiesthecryptogramandde-tokenizesthePaymentTokentoobtaintheactualPANTSPchecksthetransactioniswithintheTokendomainandrestrictions

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TransactionManagement

TokenVault

TheEMVCoTokenServiceProvidermaybelocatedattheissuer,paymentnetwork,orathirdparty

PaymentNetwork

Acquirer

Merchant

Issuer

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Processor

WhataretherequirementstobecomingaTSP?

TSPmustbedevelopedaccordingtotheEMV®PaymentTokenizationSpecificationTechnicalFramework

TooperateaTSP(notapplicableforissueron-premisessolutions):EMVCoTSPRegistrationAnddeclareyourTokenBINRanges

PCI-TSPcertification(physicalandlogicalsecurityrequirements)PublishedDecember2015

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“TSP”hasactuallytakenonabroadermeaninginsomeindustrytalk,butnotinspecifications

Inindustryterminology,“TSP”issometimesusedtorefertomorethantokengenerationandtokenverificationbecausethewaytheseservicesarebundlesbythepaymentnetworks

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TransactionManagement

EMVCoTSP

ProvisioningConnectivityto

Wallets

Sometimesallthisiscalled“TSP”

TokenVault

Examplesof“TSPs”

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VTS MDES

TrustedServiceHub

AMEXTokenService

ChinaUnionPayTokenService

TokenService DigitalPaymentPlatform

GemaltoTrustedServiceHub(TSH)=“TSP”Multi-PurposeWalletOnboardingandCardDigitization

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ENROLLMENT

PROVISIONING

TOKENIZATION

ISSUER WALLETS

HCE

PARTNER WALLETS

NETWORK

PROCESSOR

ISSUER

Integrated EMVCo TSP runs on premises

Cloud-based solution that is geo-redundant with high

availability

KeyAdvantagesofGemaltoTSH

Designedforissuers,processors,networksandaggregatorsOptimizedcosts:connectonce,deployanycard,anywhereOnboardeasilywiththefuture-proofMobileGatewayModularandissuer-controlledtokenizationEMVconsultingteamstoassistwithcarddigitizationAlignedwithregulatorythemes

MaintainissuercontrolBusinessmodelCostsRiskmanagementIndependentandnetwork-agnosticroadmap

CombinewithcardissuanceTopofwalletmarketingFornewusecaseslikeinstantissuance,emergencycardreplacement,cardrenewal

Worldclassgeo-redundanthighavailabilitydatacenters,paymentnetworkcertified

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Thank You naomi.lurie@gemalto.com

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