What is a Token Service Provider?
- 2. To increase the security of mobile
payments, many payment schemes
nowadays apply a technology called
tokenization.
- 3. Tokenization is the process of replacing an existing
payment card number with a surrogate value (token).
- 4. This token is used during a payment
transaction, keeping the original card
number safe.
- 6. A Token Service Provider (TSP) is an entity within the
payments ecosystem that generates and manages tokens.
Token Service Provider
BankCustomerNFC POS
Acquirer Payment network
- 7. The TSP maps the original card number with the
payment tokens and stores this safely in a token vault.
- 8. Often these tokens can only be
used in a specific domain such as
a merchant’s online website or
channel, limiting the risk even further.
- 10. A TSP manages the entire lifecycle of payment
credentials including:
Token Requestor Authorization Host
- 15. 5. Identification and verification:
Ensures that the payment token is replacing a PAN that
was legitimately used by the token requestor.
- 16. 6. Clearing and settlement:
Ad-hoc de-tokenization during clearing and settlement
process.
- 19. Becoming your own TSP gives full control over the
tokenization process: creation, storage, issuance and
management.
- 21. By having your own TSP, you are in full control of digital
payments by issuing tokens directly without third party
intervention.
- 22. By using a third party TSP from the payment schemes,
issuers need to integrate with each payment scheme.
- 24. 1. Reduce long term costs: no additional TSP fees from
the payment schemes.
- 25. 2. On-us transactions: save on transaction fees when you
are the issuing as well as the acquiring bank.
Issuing and acquiring bank
- 27. 4. Keep track of customer
payment behavior to gain
valuable insight and be
able to offer personalized
services.
- 28. 5. Expand to multiple use cases.
Host Card Emulation
Embedded SE
Internet:
Card-Not-Present
Value added services
/ non-card payments
- 29. 6. Have your own strategy and be future proof in order
to stay competitive.
- 31. Bell ID® Token Service Provider enables issuers and
processors to perform the role of a Token Service
Provider:
- 37. Becoming your own Token Service Provider?
Bell ID can help:
www.bellid.com
info@bellid.com
- 39. With over 20 years of expertise, Bell ID is considered the world’s leading provider of
lifecycle management solutions for tokens (e.g. smart cards, mobile NFC phones)
deployed in single and multi-application programs.
www.bellid.com
Martin Cox
Global Head of Sales
m.cox@bellid.com