Tokenization offers increased security and enables a shared cart across channels, according to a report by retail management consulting firm BRP.
BRP’s SPECIAL REPORT: Security says that retailers must continuously reexamine their policies on customer payment and personal data as new dangers emerge that require enhanced security measures.
Tokenization enables retailers to remove sensitive information from the network by substituting payment card data with a token, which is used as an identifier but has no exploitable value or meaning.
“Tokenization is a top priority for many retailers, as it improves the security of sensitive customer payment data,” said Ryan Grogman, senior vice president and practice lead of BRP. “Tokenization technology is also valuable as a foundation to enable a seamless experience for consumer returns, customer profiles and electronic shopping carts that need to retrieve data across channels. What began as a solution to remove payment card data from a retailer’s environment has found additional value in substituting Personally Identifiable Information (PII) to help drive omni-channel use cases. We continue to see improved security practices across the retail industry in efforts to thwart malicious attacks and remain compliant with regulations, but this is a never-ending challenge.”
According to the BRP Consumer Study, 56% of customers want access to a single cart to shop across channels and be able to reach their cart via phone, computer or in-store.
But only 38% of retailers have implemented a single token solution to enable this feature.
While some retailers are on the path to offering this service by implementing a single token across the enterprise, only 7% of retailers offer this shared cart concept.
BRP’s SPECIAL REPORT: Security is based on findings from the BRP Consumer Study and the 2019 POS/Customer Engagement Survey and offers insights into how retailers are progressing with their security efforts to protect consumers’ payment and personal data.
The SPECIAL REPORT: Security highlights:
- Customer expectations: 33% are likely to allow retailers to save credit card details if it eases the checkout process
- Retailer capabilities: 61% have implemented end-to-end encryption to offer customers greater security of their personal and payment data
- Customer expectations: 50% are likely to allow retailers to save personal details if it eases the checkout process and allows for more personalized offers
- Retailer capabilities: 38% have implemented a single token solution across the enterprise to offer customers greater security of their personal and payment data
- Customer expectations: 38% are likely to choose a store if it offers mobile wallet/payments
- Retailer capabilities: 59% offer mobile payment acceptance