Five business problems solved by network tokenization
Instant Access: Unveiling the Magic of Push Provisioning
Enough has been said about the benefits of digital wallets – from their speed, their convenience, and how they allow retailers to capture more sales – to fill an encyclopedia.
Less talked about, however, is the process that enables cardholders to add cards to new digital wallets – and how now, there’s an emerging way of doing so that transforms this clunky, time-consuming process into one characterized by speed, seamlessness, and simplicity.
We’re talking about push provisioning.
But what is push provisioning, exactly – and why is it important? Below, we’re breaking down how push provisioning works, and how it stands to benefit not only cardholders – but card issuers, too. As well as why, for all parties, it’s fast becoming a non-negotiable.
What is push provisioning?
Push provisioning, at its most basic, is a process allowing consumers to add cards to digital wallets – easily, quickly, safely, and conveniently.
The card issuer actions push provisioning, rather than it being actioned by the cardholder (as is the case with the existing process).
Also, tokenisation is enabling push provisioning, too. Tokenisation is a security technology in which unique digital identifiers – the ‘tokens’ – replace sensitive card information. Tokenization helps combat fraud – and enables the payment process to take place without the risk of that card data being mishandled. It has enabled the rise of digital wallets to the extent that in 2022, 43% of US consumers – and 53% in the UK – used them to make a purchase.
Push-provisioning is a specific benefit of EMV tokenization (network tokens) versus card tokenization. Because the data in the network token flow is tokenized through the entire flow (i.e. from merchant to issuer and back again) it's easier to use that token in other flows e.g. to provision cards to a new wallet.
When a cardholder adds a card to their smartphone, it gets tokenized, then “pushed” into that digital wallet, where it can be used to make payments.
Why is push provisioning important?
Push provisioning is vital for card issuers, cardholders, and wallet providers alike. And the best way to look at why push provisioning is so important? To look at the alternative.
Without push provisioning, adding a card to a digital wallet entails a lengthy, laborious verification process requiring each party involved – that’s not only the cardholder, but the issuer, scheme, and wallet provider, too – to become embroiled.
With so much time, effort, and hassle bundled up in this manual procedure, errors on the part of the cardholder – or a simple lack of understanding, or engagement with, the process – are easy to introduce.
Whether through a fear of making mistakes in the identity verification process, forgetting (or simply not being bothered) to action the required any of the steps, or a simple lack of faith in the system, this manual method presents far more roadblocks and friction barring the cardholder’s path – especially compared to the seamlessness push provisioning provides. Statistics prove that people are much more likely to abandon a purchase if they switch to a different window during the checkout process.
As for card issuers, push provisioning is fast and flexible: streamlining and securing the card activation process, and allowing them to deploy cards more rapidly and reliably. And, for the wallet providers themselves, push provisioning’s convenience allows these companies to acquire and service customers in a way that, without it, wouldn’t be possible at such scale.
How does push provisioning work?
The key difference between push provisioning and the traditional process of adding a card to a digital wallet is this:
- In the traditional process, the cardholder initiates the card add.
- With push provisioning, it’s the card issuer doing this: remotely “pushing” the card credentials through to the digital wallet.
In the usual procedure, the customer must add their card details – the card name number, expiry date, and security code – themselves. This introduces the likelihood of human error creeping into the process, and – if that customers’ card has been lost or stolen – the potential for fraud, too.
With push provisioning, though, card issuers can leverage secure channels and encryption mechanisms (including, remember, tokenisation) to convey the card’s credentials directly to the digital wallet.
What’s more, while the standard process involves multiple verification steps – making it longer and more tiresome – push provisioning means the card can be used on the cardholder’s digital wallet immediately.
This isn’t just important for consumers adding new cards, either – but when they’re updating existing ones. Every time a card changes, the card issuer can remotely update these details – rather than the customer losing access to the card on their digital wallet until they update the details manually, themselves.
Benefits of push provisioning for card issuers
If you have a smartphone and a bank account, the chances are you will, at some stage, have added a card to your smartphone and into a digital wallet such as Google Pay, Apple Pay, or Samsung Pay. And, if you’ve ever noted how slick and seamless that whole process is, well – you’ve experienced the benefits of push provisioning for the cardholder first-hand.
But how can it benefit card issuers, too?
Win – and retain – more customers
By offering a frictionless, user-friendly, and digital-first way of adding cards to a digital wallet, card issuers can elicit adoption of – and engagement with – your products.
This can serve as an additional incentive for new customers to sign up – and, once they’re on board, drive transaction volume. This, in turn, can lead to a deeper affinity with your brand: helping you retain customers through loyalty and connection.
Speed up your time-to-market
By cutting down the amount of time it takes a cardholder to add a card to a digital wallet, card issuers can allow consumers to start paying through their smart devices instantly. This shortens your time to market – and enables to you to stay on top of the competition – all while reducing abandonment- and friction-related costs.
Enable a more secure customer experience
Because push provisioning utilises tokenisation (plus a wealth of other secure channels and encryption protocols) it’s not just faster than the traditional method of adding a card to a digital wallet – but safer, too.
For your customers, knowing they’re backed by layers of the most modern and secure payments technology will reaffirm their faith in your brand – and engender loyalty for the long haul.
Checkout.com – issuer, issuer processor and card program manager in one
Here at Checkout.com, our full stack of payments solutions means we allow you to launch and manage your own card program – be it physical or virtual.
Your card programs can be kept secure and efficient by utilizing our network token solution, which ensures a further layer of encryption with the tokenization of card details.
You can create sustainable, scalable, and unique card experiences – then customize them to your exact needs. We can also oversee and manage every aspect of your card program: allowing you to be as hands-off as you want.
Essentially, we’re an issuer, issuer processor, and card program manager – all rolled into one.
Want to know more about what we do? Keen to hear more about push provisioning, and how it’s set to transform the simplicity and seamlessness of how you take – and enable – payments?
Get in touch to speak with one of our experts today – and learn more about how our card issuing product can elevate your business’s approach.
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