A Deep Dive into Payments Tokenization:
Leveraging, Productizing and Monetizing Tokens

Highlights

Tokenization can add significant value to your business, OR it can disintermediate you from your customers. Which will it be? This 5 day deep dive into tokenization provides:

• a business oriented introduction to tokenization
• a monetization road map for new products and service offerings

Why a course on Payments Tokenization, and why now?

The product and service plans of merchants, corporates, issuers and processors depend on those organizations’ understanding of how payments tokenization works and how to manage the positive and negative impacts of tokenization on their businesses.

Retail Payments Tokenization has been available for some time. However, the current tokenization offerings and technologies are only the first generation of a very powerful payments management capability.

Tokenization can add significant value to your business
Properly implemented, tokenization can enable a much closer and more focused relationship between merchants, corporates, processors, issuers and their clients.

Or, Tokenization can disintermediate you from your customers
Conversely, failure to properly manage payments tokenization services by third parties is an existential threat to your organization’s control over key customer data.

This 5-day deep dive provides both a business planning and product strategy focus on payments tokenization, designed to support decision making by merchants, corporates, issuers and processors on two key questions:

• Does payments tokenization warrant serious consideration by the organization?
• Should the organization invest significant resources in a tokenization capability?

 Aim of the Course:

This 5 day deep dive into tokenization provides:

• a business oriented introduction to tokenization
• a monetization road map for new products and service offerings

The business oriented introduction to tokenization addresses how it works, who the key stakeholders are and the roles they play in controlling the business and data generated by payments tokenization. Key stakeholders include leading vendor and outsource solutions, with a focus on the card scheme offerings. Of particular importance is the generation and control of the additional business data generated by tokenization (hint: there are options for businesses to take further control of their payments through appropriately structured tokenization services).

The road map for monetization of payments tokenization into new products and service offerings by merchants, processors, corporates and issuers focuses on how tokenization works in terms of data models, processes and operating environments, and therefore how stakeholders can use payments tokenization to increase their value propositions (hint: the stakes are high, with significant new payments product wins and losses for stakeholders in the payments ecosystem).

By the end of this comprehensive training program, delegates will be able to undertake in-depth analyses of tokenization in the context of their organization, enabling them to make informed decisions on the adoption and use (or not) of payments tokenization in their payment environment.

Learning Outcomes:

By the end of this course delegates will be able to:

• Identify the relevance of payments tokenization to their organization
• Define the true business drivers behind payments tokenization
• Map how tokenization services fit within the payments ecosystem
• Evaluate the market readiness for the adoption of payments tokenization services
• Identify the key players in the tokenization ecosystem
• Define a business case and SWOT analysis for their organization
• Describe how tokens function within the payments environment
• Specify core business processes, system processes and organizational responsibilities in the context of their organization
• Define the legal implications of tokenization
• Identify new tokenization business apps
• Enumerate tokenization market potential
• Evaluate the costs, benefits and business cases for tokenization
• Identify important implementation considerations
• Undertake go/no go decision making

Who Should Attend:

This course is specifically designed for organizations that must make a decision as to whether they should invest or further invest in their payments tokenization capabilities. The key consideration in the design of this training program is ‘How organizations can monetize Payments Tokenization’.

• Bank Strategic decision makers
• Digital system architects
• Banking services development team
• Merchant System Operations
• Process engineering team
• System Network Architects
• Product Development
• Product Management and Marketing
• Fraud Detection department
• Mobile Wallet design specialists
• IT and Technical Departments

Course Overview

Day 1 – Why Payments Tokenization?

The potential of payments tokenization

• Improved fraud, security and much more
• Compliance and regulation
• New product opportunities

The importance of payments tokenization

• A history of payments tokenization
• Stakeholder value propositions
• The high stakes for payments stakeholders

What business needs to know

• The lifecycle of a payments token
• Tokenization in the payments ecosystem
• Introducing the tokenization data model

Lessons learned in adopting tokenization

• Upsides, downsides, opportunities, risks
• The winners and the losers
• Key players and enabling technologies

Day 2 – The Business of Payments Tokenization

The market potential for tokenization

• Canada as an example marketplace
• Market factors for cardholder buy in
• Market challenges for end user concerns

The key players in tokenization

• Leading vendors, services and technologies
• The card schemes and their competitors
• In house and outsource options

Monetizing payments tokenization

• Current and emerging use cases
• Global adoption models, status and trends
• Lessons learned from implementations

Getting to a business case for tokenization

• The end market perspective
• Liability, compliance and risk
• The high stakes SWOT outline

Day 3 – The Process of Tokenization

• The six party payments ecosystem
• The seven stakeholders in tokenization
• Tokenization in the payments ecosystem
• Token requesting stakeholder roles
• Token provisioning stakeholder roles
• Token processing stakeholder roles
• Token requesting system processes
• Token provisioning system processes
• Token processing system processes
• Taxonomy of tokenization offerings
• Software and services vendors
• Card scheme tokenization deconstructed

Day 4 – The System of Tokenization

• Token types and intelligence
• Token functions and lifecycles
• Next generation tokens beyond payments
• In house, outsource operations continuum
• Tokenization data model
• Security in the tokenization architecture
• Token compliance, standards and protocols
• Who contracts with who, for tokenization
• Token services fees and liability
• Mobile payments tokens use cases
• Card on file payments tokens use cases
• Card present payments tokens use cases

Day 5 – The Business of Tokenization

• The global market perspective
• Key conditions for market success
• Positioning in the market segments
• Managing expanded data and logic
• Monetizing fraud control and security
• Enabling new products and services
• The business case for
  • Merchants
  • Issuers
  • Processors
• Questions and decisions by
  • Merchants
  • Issuers
  • Processors
• CONCLUSION: The high stakes for payments stakeholders

Approach:

In delivering these training programs we aim for an immersive experience in which delegates can apply the information and skills gained during the course in their organizational contexts. The training program includes at least four hands-on exercises each day to provide delegates with the opportunity to reinforce their learnings and ensure that the learning outcomes are achieved.

Students will receive a course workbook and completion certificate at the conclusion of this course.

Credits

SPA-24: A 5-Day – Payments Tokenization Deep-Dive course, is brought to you by Secure Payments Academy, in partnership with Technology Strategies International Inc. and VCS Technologies Inc.