Visa and Apple have announced partnership to develop a localized electronic token service that will require debit and credit card users acquire a unique identifier for safer transactions.
Visa will offer the security platform anticipated to be ready sometime next year, riding on Apples entry into the digital wallet business after launching its latest iPhone 6 models.
The new capability called Visa Token Service, adds Visa debit and credit cards to Apple Pay , Apple’s new payment service, and enable their customers to make easy and secure purchases both in stores and in apps.
Visa Token Service technology works by replacing sensitive payment account information found on plastic cards with a digital account number or “token” that can be safely stored on mobile devices and used for in store and in app purchases.
Visa will roll out the service to financial institutions in phases — initially supporting early participants in the Apple Pay launch.
CyberSource and Authorize.Net, two Visa-owned payment platforms, have also integrated with Apple Pay, providing online merchants with payment management solutions and supporting them to securely accept in app payments from the iPhone range of phones.