US based chip making tech giant Rambus recently made an announcement that US based card payment service provider Visa Inc., has made an agreement with the firm to purchase the chipmaker’s tokenisation and ticketing divisions more commonly referred to as Rambus tokenisation assets, Rambus’ financial arm. Visa has stated that purchasing Rambus assets which was formerly known as Bell ID & Ecebs will allow the firm the beef up its security credentials which is the reason and driving force behind this move. Tokenisation is the process of replacing sensitive payment information with unique identifier more commonly known as tokens. This process has had significant success in the market recently by increasing security of card based payment and fund transfer transactions by reducing fraud at the point of sale both online and in physical payments for any card service provider who has experimented with this system.
Visa also stated that via this purchase, the firm can expand the benefits of tokenisation beyond just its own card transactions and implement it in other forms of fund transactions such as domestic card networks, account based fund transfers and real time payment systems. Also aside from benefits via tokenisation process, Visa will also benefit from Rambus’ digital ticketing portfolio with their public transport operations given the fact that Visa has nearly 250 transit projects which are currently underway around the world given that most cities where they are located are seeking to upgrade their systems to match current digital payment trends. As per the announcement, Visa and Rambus have signed a definitive agreement to express serious intent on this purchase deal but the amount for which Visa is acquiring Rambus hasn’t been revealed yet.
Speaking about this deal, TS Anil, Senior VP and global head of payment products and platforms at Visa commented, “Facilitating safer, more secure digital transactions is core to Visa’s brand promise and central to growing electronic payments for everyone, everywhere. As the way people and businesses pay and get paid continues to evolve, the addition of Rambus’ technology will allow us to deliver greater security beyond the card to support more transactions, payments systems and participants. Going forward, we will apply these expanded capabilities, expertise and scale to help further all forms of global commerce”. Speaking about same topic, Jerome Nadel, Senior VP and General Manager of payments, ticketing and CMO at Rambus commented, “Rambus Payments and Ticketing solutions are at the forefront of tokenization technology. Joining forces with Visa as a payments leader will allow the group to scale technology and capabilities to deliver new products and services to the market, while continuing to partner with existing customers”.
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