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Managing Risk in the Digital Era with Payment Networks

New technologies have made it easier than ever for consumers to securely make purchases. Now businesses are beginning to follow suit.

By Drew Hofler | Updated on November 17, 2015
Payments are a necessary part of commerce. But managing them requires capturing, storing, and securing sensitive information; complying with complex regulatory requirements; and validating the identities of those seeking to be paid.

These activities carry a lot of risk. As attacks on corporate payment systems continue, many companies are stepping up their efforts to mitigate those risks.

Digital payments, which can help mitigate risk in business-to-business (B2B) transactions, are now taking a page from the consumer playbook. Much like the tokenization mechanism used by consumer payment technologies such as Apple Pay, these solutions create a proxy number, a code that stands in place of any specific corporate financial information until the payment safely reaches its destination. Proxy numbers are used in place of bank account information until a transaction reaches a payment network where it is safe from hackers and fraudsters.

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