Research from the Federal Reserve Bank of Boston urges the ecommerce industry to upgrade to tokenisation as a means of payment in an attempt to reduce fraud.

With payment tokenisation, a customer’s credit or debit account number is replaced with a randomly generated string of numbers, or “token”, which is unique to each user’s mobile device.

A token, according to the research, is indecipherable to fraudsters, even when they intercept it. Tokens are passed through the payment process without