Securing Connected Commerce Through Tokenization on Mobile and Other IoT Devices

Sequent’s tokenized platform secures PII and digital wallets enabling a frictionless payment experience for both bricks and mortar and eCommerce

I joined Sequent as CEO nine months ago as the new tokenization market was accelerating. Mobile payments, digital banking, and digital wallets are all on the rise. I am excited to become a part of a growing new ecosystem of trusted advisors deploying tokenization across several market segments. With tokenized security measures at work, mobile transactions and data being transferred are protected and immutable, mitigating risk as connected commerce expands globally in ways we could not have imagined even five years ago.

My teams at PrivaSys and FiTeq created dynamic authentication, the security behind mobile contactless NFC payments used by over 100 million US-based consumers under the American Express, Discover, First Data, Mastercard and Visa brands. There was a lot to learn from the introduction of contactless especially now when consumers have concerns about security when using mobile payments. Today, Sequent’s customers offer a truly secure experience that uses tokenization to protect personally identifiable information (PII) and digital assets. When PII is replaced with a token, it renders breached data as useless to cybercriminals while at the same time providing a frictionless customer experience.

Protecting Consumers PII

Why is tokenization so important to our customers? The answer is simple – rampant data breaches and the associated cyber fraud. Javelin estimates more than $16 billion has been squeezed out of the economy in just one year due to data stolen in breaches. Losses are only part of the problem. When consumers receive a brand new credit or debit card after a breach, it’s a colossal inconvenience, not to mention, and erosion of trust. Tokenization of the sixteen digits you see on the front of the card removes the hassle because the sixteen digit identifier of the card is not what is transmitted at the point of sale. Only the token can be captured in a breach. When and if a breach happens, the old token cannot be used by any fraudster. The consumer keeps shopping with their mobile device and it is the bad guys who cannot use the card data!   

Why do thieves rob the bank? Because that’s where the money is! In these days of connected commerce, cybercriminals will continue to try new ways to rob consumers. Tokenization puts the brakes on that by keeping payment card data locked away remotely in a Token Vault, whether it is Mastercard’s, Visa’s, or Sequent’s.  

Securing All Mobile Transactions

Sequent was established with a laser focus on mobile security, so it is part of our DNA. Sequent began with a unique solution based on Secure Element (SE) hardware in mobile phones. In 2017, with new security technology like tokenization, Sequent successfully expanded its business to Host Card Emulation (HCE) and deployed in 2018 in the Middle East where one on-premise instance served all of the banks in that region.

These advancements led to today’s Sequent Platform, which orchestrates and manages the digital issuance and tokenization of any type of personally identifiable credential that is sent to any type of connected device. Today our focus is on digital wallets holding payment accounts.   Our Sequent Tokenization Platform is extensible to any financial account or loyalty programs. Quoting Avivah Litan, Distinguished Analyst at Gartner Group, “Tokenization is an effective strategy for securing credit cards and it’s a natural progression to use it to protect PII & EHR.”  

I joined Sequent after kicking the tires on Sequent’s Tokenization Platform. The team built and harvested its technology in the payments channel, achieving both TSM & Tokenization certification by both Mastercard and Visa. There is a proven product market fit in payments.  

PII Protection Spans Every Industry

I also recognized that Sequent Platform could be scaled and leveraged to solve the problems of protecting PII in the adjacent markets of PSD2, GDPR and eHealth Records. HIPAA regulation parallels the payment channel. With tokenization PCI-DSS compliance is more quickly achieved. When the PII in an eHealth record is tokenized, HIPAA requirements are reduced, enabling health care providers to more cost efficiently comply with HIPAA, while mitigating the risk of HIPAA penalties.  

No doubt, Avivah Litan got it right. Tokenization proved itself in payments. Expansion to other channels that require PII be protected is the next step in cybersecurity. Sequent is at the forefront of these tokenization initiatives with a team that is deeply experienced in both the rigorous security standards set forth by PCI-DSS as well as they certifying entities within the payment networks who set the standards for global payments. Sequent is well positioned to capture its share of the payments business as we leverage our core technologies globally into new channels — PSD2, GDPR and eHealth records.

 

Whitepaper: The Digital Wallet -- Expanding Commerce to the Mobile World

This 15-page white paper explains the evolution from a closed wallet environment to an open, digital wallet, and the security factors companies should employ to protect their data, customers, and transactions.

 

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Joan Ziegler

Joan Ziegler

Joan Ziegler is the CEO of Sequent.

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