Visa Inc (NYSE:V) is launching Visa Token Service, a feature which Apple Inc.(NASDAQ:AAPL) uses in its freshly released products. The former company actually saw potential in what seemed to be a conflicting partnership with the tech colossus, as Ryan McInerney, Visa Inc (NYSE:V) president, informed on CNBC.
“We announced Visa Token Service today, which is a new platform and capability that enables our partners to launch new and innovative payment capabilities like the one you heard Apple announce today and ensure that every time the consumer uses it it’s a very safe and secure transaction,” said Ryan McInerney.
Visa Inc (NYSE:V)’s president further explained that the platform uses a digital token, a card number, embedded onto the phone or any secured element and a dynamic element that’s constantly changing. Now, this works fairly simple in theory although it has a strong algorithm beneath, there will be the original card number on your device, then many temporary, others call them fake, numbers are generated. The algorithm can depend on time, transaction, your personal data, but it also might be independent from all those. Somehow, those generated figures will be read by other Visa Inc (NYSE:V)-accepted devices so that the payment is done, however, your original credit card number will never be revealed to anyone, not even the seller.
In terms of security, it is actually a breakthrough, because of actually hedging the risks of security breaches through making sure that current phishing techniques will be useless in the context of this new service. Furthermore, Visa Token Service was not designed solely for Apple Inc.(NASDAQ:AAPL), despite the fact that the latter used it as core feature for its new payment system, and is available for any one of Visa Inc (NYSE:V)’s partners that would like to try this new feature. The banking service provider’s price spiked almost 1% following the announcement, up to a little higher than $216, and might go further still.