Tokenisation: Digital Danes cross the bridge to a new era of innovation
Every day, thousands of motorists drive across the majestic 18km Great Belt Bridge connecting east and west of Denmark. Most pay the bridge toll via a direct debit subscription1, so they can pass over the bridge easily, without having to stop and pay.
Toll payments are just one example of the widespread adoption of digital transactions in Denmark. The country laid the foundations for its ambitious long-term digitisation strategy decades ago, and this foresight has paid off, transforming many aspects of the economy and society as a whole. Denmark punches above its weight for a small country of 5.8 million people, ranking as the world’s most competitive digital nation in 20222.
One way Danish businesses are taking the next digital leap forward is through tokenisation. After becoming one of the most popular ways to pay through digital wallets, now merchants are beginning to leverage this technology for their online platforms and apps.
Working with its Payment Service Provider, Billwerk+, toll system operator Brobizz is one of the first businesses in Denmark to implement tokenisation for its Great Belt Bridge location, where the number of people crossing the bridge daily is as many as 60,000 in peak season – 38,000 as an average3. Any friction in the payment experience can have a considerable impact - long queues, slower journeys, frustrated customers and more pressure on the Brobizz call centre. A large proportion of calls are due to payment issues4.
How is tokenisation enhancing the experience for drivers?
A token can be inserted in any payment experience, reducing the friction in most transactions today. Most drivers crossing the Great Belt Bridge already have a direct debit subscription with their vehicle and card details registered, so when they drive up to the barriers, it recognises their number plate, letting them cross and charging their account accordingly.
Adding tokenisation to this experience means that once bridge users have loaded their details into their account once, they won’t need to think about the process of paying again as Visa updates their token in the background – meaning the payment becomes fully automated and almost completely invisible.
Before tokenisation, if a customers’ card was lost or expired, they were required to manually update their details in the online platform. If their details weren’t up to date, their payment would be declined, and Brobizz would have to bill them manually. If it wasn’t updated before their next journey, they’d need to join the queue to pay manually, causing friction and frustration for both drivers and the toll station.
Updating their payment systems with token technology reduces this friction, meaning Brobizz can benefit from higher approval rates, of up to 5 percentage points5, and fewer calls into the call centre – enabling them to lower operating costs, keep customers happy and ultimately grow their revenue.
Seamless and secure technology
“When Brobizz enables tokenisation within their platform, instead of storing a customer’s sensitive card details, they replace them with a unique string of numbers called a ‘token’.” Says Jens Damgaard, Head of New Business, Business Development, Nordic and Baltic Region, Visa.
“Not only is a token more secure as it can’t be read or used by a fraudster, but it also continues to work even if the underlying data changes. So, if a customer gets a new card, Visa ensures their token is up to date, so their payment is still accepted. This means drivers crossing the Great Belt Bridge never have to worry about manually updating their details, making their journey smoother and their experience with Brobizz a more positive one.”
With tokenisation increasing authorisation rates by up to 5 percentage points6, and reducing fraud by up to 50%7, Brobizz can make life easier, more efficient and more secure for the citizens travelling through the country.
While Brobizz is one of the first merchants to adopt tokenisation in Denmark, other sectors such as telecoms and utilities, which handle high volumes of customer payments, are increasingly looking at how they can leverage the technology to increase customer satisfaction, loyalty and ultimately grow their revenue.
There is already a high degree of trust in digital services in Denmark. Almost every interaction with public and private services are digital8, with all citizens having a digital ID card, digital bank account and a digital ‘post box’. Tokenisation is another step on the journey to make Danish businesses and consumers lives easier through the best and most secure digital experiences.
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1Brobizz, May 2023
2Denmark ranked most digitally competitive economy in the world 2022, Ministry of Foreign Affairs of Denmark, October 2022
3Brobizz, May 2023
4Brobizz, May 2023
5VisaNet token vs. non-token card not present fraud authorisation rates, May 2022
6VisaNet token vs. non-token card not present authorisation rates, May 2022
7VisaNet token vs. non-token card not present fraud, March 2022
8Denmark takes first place in public digitalisation, 2022