Abu Dhabi bank launches tokenized payment system using wearables
There have been numerous fintech developments in the United Arab Emirates this year.
The Abu Dhabi Islamic Bank has launched a tokenized contactless payment system.
The “ADIB Pay” system is a partnership with the credit card giant Visa and the China-based Tappy Technologies. ADIB Pay is a physical clasp that can attach to wearable items, removing the need to carry a physical card. This means any watch or bracelet, for example, could end up functioning like smartwatches with payment capabilities, according to a press release, and holders of the ADIB Visa card will be able to make contactless payments with them.
What it means: Tokenization is a system that guards sensitive information and is used to help protect against credit card fraud. A card number is digitally stored and then converted into an algorithmically generated number referred to as a token.
Why it matters: Tokenized payments are becoming popular around the world. Apple Pay and Google Pay both use this technology.
