Secure and Safe Use of Wearables for Payments

Wearables form an artery to delivering a seamless customer experience in Fintech. Be it authentication, payments, or building a customer profile, wearables and IoT anchor the experience to ease and efficiency for both the customer and the industry.

For the customer, wearables bring in an everyday context to their finance. The new ways of handling information and requests goes hand in hand with the changing lifestyle preferences. The time and effort that goes into facilitating their financial needs undergoes a thorough optimization. The devices provide personalized visibility for spending patterns.

The industry benefits of leveraging wearables for payments are, of course, at a massive scale. Processes get accelerated. The heavy accountability of obtaining and maintaining sensors and other data handling hardware are off the table. The biggest draw, however, comes in the form of data analytics.

What enables this level of data security? In one word, tokenization. This process of replacing data with tokens in the different systems it enters, while keeping the actual data in a safe data vault, is one of the basic design considerations in Toucan Finances.

RBI came out with a circular, citing the extension of “The scope of tokenization to include consumer devices—laptops, desktops, wearables (wristwatches, bands, etc.), Internet of Things (IoT) devices, etc.” 

This has opened new avenues for all the players in the industry.

Toucan already has this functionality catered to deep in its design philosophy. In anticipation of this development, Toucan payments solution has modules that enable merchant system interaction with consumer wearables, utilizing the power of tokenization. As compared to an add-on or a customization added on top, our systems are capable of working with tokenization on wearables right from the beginning.