Rambus Inc. announced the launch of its Payment Account Tokenization solution to secure account-based transactions, such as automated clearing house(ACH) and real-time payments.

The solution will enable central banks and clearing houses to replace sensitive account numbers with unique tokens and reduce the impact of fraud for transactions including direct credit, direct debit and person-to-person(P2P) payments.

Payment Account Tokenization secures card payments by replacing the valuable account credentials with a cryptographic token.

This process significantly reduces the risk and impact of account-based fraud as the foundation of a safe and secure instant payments framework. When implemented by a centralized body, like a central bank, Payment Account Tokenization reduces fraud and enables key use cases like P2P, direct credit, and push payments in real-time.

“Tokenization has already been proven successful in securing mobile payments worldwide. Our Payment Account Tokenization does the same for real-time payments, enabling account-based transactions to be processed faster and safer than ever before,” said Bret Sewell, SVP and general manager of the Rambus Security Division.

451 Research principal analyst, Jordan McKee notes, “Digital has paved the way for fast and easy payment experiences, prompting a rise in account-based transactions. Fraudsters have made note of this trend and are increasing their focus on account credentials given their growing disbursement across many locations, including e-commerce websites, mobile and P2P wallets, invoices and payroll. To protect customers and thwart fraudulent attacks, businesses must implement security tactics that serve to eliminate the use of sensitive credentials in the transaction flow.”

The introduction of real-time payments increases risk for financial institutions, as they now have seconds instead of days to identify fraudulent transactions.

By removing account numbers from the transaction process completely, tokenization can significantly reduce the risk and impact of account-based fraud and create secure real-time payments frameworks.