Exclusive: Visa Locks Out Third-Party Token Service Providers; Sets Dates for Ending Support for Alternate PANs

NFC TIMES Exclusive – Unlike at least some other major networks, including Mastercard, Visa has shown no intention of allowing third-party token service providers to tokenize Visa-branded cards, requiring nearly all issuers to use Visa’s own Visa Token Service, or VTS, sources told NFC Times.

At the same time, Visa has set specific deadlines for ending support for alternate PANs in HCE-based mobile payments rollouts, which is an alternative form of tokenization used by a number of banks, especially in Europe, for their HCE-based payments services. 

The new rules and apparent policy by Visa to shun third-party token service providers, or TSPs, even if they comply with the EMVCo tokenization technical framework, would seem to force banks to use Visa Token Service for all tokenization for their mobile payments services. This would mean that all transactions would have to use Visa’s network, at least in part. 

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