The December 2022 Aite-Novarica Group report analyzes Visa and Mastercard’s new authentication frameworks for network token payments, based on interviews with issuers, merchants, and processors. Large merchants expressed frustration over not being consulted and cited complexity in network token provisioning as a barrier. The report notes that network tokens are not inherently more secure than PAN transactions, with provisioning being a key vulnerability. While the regulatory changes promote stronger identity verification before token provisioning, gaps remain that could lead to inconsistent adoption and issues similar to those seen with 3-D Secure.

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