Why Forex and Binary option brokers should seriously consider implenting Tokenization to improve their traders deposit experience
Tokenization refers to the encryption of traders’ credit card details when entered into the payment page of a broker’s website so that the broker receives a data encrypted token (piece) of the credit card number while the rest of the encrypted data is kept by the payment processing company.
The system is useful for online brokers because payment reconciliation is possible without handling sensitive data, the token is of no use to hackers thus enhancing security, and most importantly, the merchant who uses tokenization can perform all mentioned functions within the boundaries of PCI DSS compliance, without having to be certified. Thus, brokers are legally permitted to store the tokens and the last 4 digits of the credit cards. This allows them to legally constitute a fully PCI compliant database of their traders credit cards details, without any fear of security breach.
ConsenSys Announces Ethereal Summit Tel AvivGo to article >>
From a business point of view, brokers benefit from Tokenization for two main reasons, over and above what has already been mentioned:
- A professional member’s erea can be built, where previously used credit cards are listed with their last 4 digits and traders can easily choose the credit card and the amount they want to charge to increase their balance thus creating an improvement on the trader’s deposit experience and therfore on its value, eventually resulting in an overall increase of deposits
- Tokenization also allows for easy top-up features for the convenience of depositing funds from smartphones, tablets and other platforms, again creating ease of use for traders who do not need to go back to the payment page of the brokers’ website each time they wish to make a deposit
So for all Forex and Binary Options brokers, thinking carefully about the different options offered by your payment providers is crucial, and Tokenization is definitely one to look for.
You may also find our insight about payment pages interesting.