OUTLOOK: SCHEME TOKENS (M4M / VTS)

Learn more about RYD Pay and about scheme token — the next big thing to reduce friction and improve conversion.

We are proud to announce that wallee features the new way to pay at the gas station. Skip the queue with RYD PAY. RYD PAY is the revolution in the payment process at petrol stations. Pay directly via the ryd app on your smartphone at the gas pump and save yourself the step into the shop. Fast, convenient and guaranteed secure. RYD PAY is available at numerous gas stations all over Germany. We are very proud that an international startup in the format of RYD chose wallee to work with wallee.com.

Learn about how scheme token will increase the security and conversion of credit card payments.

Scheme Token will significantly improve the security of online credit card payments as well as convenience and conversion in the future.

Who and What is RYD PAY?

RYD, the biggest independent connected car platform in Germany, has integrated wallee into their mobile app Ryd using the wallee payment SDK for Android and iOS. The wallee SDK allows ryd to capture the payment details securely and in line with PCI-DSS requirements. Wallee.com stores the payment details in their infrastructure for further processing securely.

Have a look at how RYD PAY integrated our mobile SDK in their mobile app.

1. Customers can create an account/profile within the app, where their credentials and payment information are stored.
2. Using the app, customers are able to locate the gas stations that support this app within their vicinity. The customer drives to that gas station to fill up their car.
3. Customers refuel their car as usual. However instead of walking into the shop to pay for the fuel, they open the app and choose the number of the fuel pump they just used to refuel their car with.
4. The data from that pump is loaded onto the screen: Amount of litres, amount in Euros and; payment method (which is stored in the app). All the customer has to do is hit the “Pay Now button” and they are good to go.
5. Payment is initiated, authorized and completed in the cloud using the token that wallee stored in the backend. Customer will receive the invoice sent directly to their email, which is also stored in his account/profile, and the customer can drive off with a filled car.

The process is documented below with some screenshots. There is also a YouTube video (German) available that demonstrates the process.

Outlook — Technical and Regulatory Challenges with Tokenized Payments Information on Scheme Level (M4M / VTS)

With the trend of digitalization and mobile apps — payment becomes an invisible process where the card is charged almost unnoticeably. This allows the merchant to charge the payment details when the customer is not present or like here to charge the payment credentials without asking the customer again to present them — the payment process moves into the background in order to create a hopefully seamless checkout experience. A process we all know from applications like Uber, MyTaxi, Fairtiq, SBB — Mobile, etc. However, there are regulatory and technical challenges around the corner.

However, there are further challenges on the horizon:

1. PSD2 requires a correct handling of those tokens. First of all, secure authentication is required when adding the card. In case the use case is not a merchant initiated transaction or otherwise exempted from the SCA, also the token purchase has to be properly authenticated by a second factor. More information can be found in our PSD 2 update. Wallee provides the necessary tools to handle the transactions as seamless as possible according to the regulatory requirements.
2. The card details expire after a certain period of time and you need to ask your customers to update their payment details. Of course this disturbs the seamless checkout experience of the customer and could be a potential reason of customer churn. However, the international schemes are currently rolling out new products that allow you, as a merchant, to tokenize the card with the payment scheme. In this case the card number we not only be stored and tokenized within wallee but also within the major schemes (Visa / MasterCard / Amex /etc) in case the card issuers participates (which is mandates — at least by the major schemes). This has the big advantage that you as a merchant will be notified when the card is replaced, expired, stolen etc. This allows to increase the authorization rate and increase the conversion as less interaction with the buyer is necessary or more specific interaction is possible as you as merchant could pro-actively ask the buyer to update the card. Wallee is currently implementing the scheme tokenization for the new digital products with Visa and Mastercard.

There are also other additional interesting use cases that can be realized based on the technology mentioned above. The increased issuer participation allows you as a merchant to know more about the tokenized card and there is more information if you will be able to charge the card on file before you start the transaction which will itself also open up new opportunities.

More Information Needed?

Do you plan to develop a mobile app yourself? Are you interested in new technologies like MDES for Merchants (M4M) or Visa Token Service (VTS)? Do not hesitate to get in touch with us.