PAYMENT OBSTACLES

Why tokenization?

Data security concerns, the need to optimize revenue, and the continued evolution of the customer experience all present challenges in todayʼs changing payment environment. Here are a few of the varied concerns and trends that tokenization helps answer:

DATA SECURITY CONCERNS
  • 8.4 Billion

– Records exposed in Q1 2020 (up 273% compared to Q1 2019)³

  • 8.19 Million

– Average total cost per U.S. breach in 2019 ⁴

REVENUE OPTIMIZATION
  • 33%

– Credit cards reissued each year, creating a challenge for card-on-file and subscription merchants ⁵

  • 35%

– Customers who forget to update merchants when thereʼs a
change in payment credentials ⁶

  • 81%

– Increase in recurring card-on-file payments compared to
two years ago⁷

EVOLVING CUSTOMER EXPERIENCES
  • 55%

– Decline in same-store sales in April 2020 vs. April 2019 results
in quick-service restaurants (enabling new, faster checkout
experiences to close the gap)⁸

  • 259%

– Year-over-year surge in buy-online-pickup-in-store (BOPIS) in
August 2020 vs. August 2019 at retail stores during the
COVID-19 pandemic ⁹ which are here to stay…new customer
expectations and habits.

SECURITY AND SOLUTIONS

Revenue growth and billing control

Tokenization increases revenue, lowers risk exposure, and improves customer experiences through multiple channels (such as in-person and point of sale, web/mobile commerce, in-app, and call centers).

  • Reduced customer friction and subscription churn
  • Decreased payment-related fraud through storage of sensitive data
  • Encourages deeper customer loyalty
  • Increased control of billing
CONTACT AN EXPERT

³ 8.4 Billion Records exposed in Q1 2020, Security Magazine, May 12, 2020, https://www.securitymagazine.com/articles/92369-4-billion-records-exposed-in-q1-2020
⁴ What is the Cost of a Data Breach? Marty Puranik, Forbes, Dec. 2, 2019,
https://www.forbes.com/sites/forbestechcouncil/2019/12/02/what-is-the-cost-of-a-data-breach/#7942947329e7
⁵ U.S. statistics, cited in study by Auriemma Consulting Group – Automatic and Recurring Card Payments, Cardbeat US, Issue 5 2016
⁶ U.S. statistics, cited in Credential-on-le Pain Point Research conducted by Engine Group, Inc., June 2018
⁷ U.S. statistics, cited in Credential-on-le Pain Point Research conducted by Engine Group, Inc., June 2018
⁸ Less Contact is More in Order-To-Eat Space, PYMNTS, May 21, 2020, https://www.pymnts.com/restaurant-innovation/2020/less-contact-is-more-in-order-to-eat-space/
⁹ Adobe Digital Economy Index, Adobe Analytics, Aug. 2020,
https://www.adobe.com/content/dam/www/us/en/experience-cloud/digital-insights/pdfs/adobe_analytics-digital-economy-index-2020.pdf