Privacy provider Very Good Security (VGS) has launched an expanded partnership with data network Plaid to offer tokenization services, the company announced on Monday (May 16). press release.
“Tokenization can help protect personally identifiable information (PII) and sensitive data from being exposed and used for nefarious purposes,” VGS said in the press release. “VGS will provide Plaid customers with personal data tokenization and financial data vaulting services. This will help ensure end-to-end data security for Plaid customers by seamlessly integrating VGS services alongside Plaid APIs.”
See also: “Zero Data” enables companies to control sensitive data – and find value in it
VGS also said its Tokenization and Zero Data Platform enables organizations to derive value from sensitive data with format preservation and full portability, allowing customers to avoid vendor lock-in and reclaim time spent on data security hygiene and compliance maintenance.
“Building and running financial apps involves interacting with PII and sensitive account data,” said Hoang Leung, Head of Payments Products and Solutions at VGS. “Technology companies building these apps extract more value from data when tokenization is employed, creating protection for the end user and efficient, secure operations for the business.”
Leung added that the partnership will allow Plaid’s customers to add new levels of data security without disrupting their ecosystems and give them the ability to derive more value from their data.
Last month, Plaid partnered with data protection platform Skyflow to help developers build applications with data protection infrastructure using their application programming interface (API). Skyflow’s Data Privacy Vault offering helps its customers build FinTech applications with privacy, security and compliance tools.
Continue reading: Skyflow, Plaid data protection and privacy partner for FinTechs
With the partnership, Skyflow will provide pre-built connections to Plaid’s products and a predefined Vault path for Plaid customers, giving developers and users peace of mind that data accessed through Plaid is stored securely.
PYMNTS spoke to Mahmoud Abdelkader, CEO and co-founder of VGS, last year about the value of a concept known as “Zero Data”.
In terms of mechanics, Zero Data allows businesses to map proprietary Payment Service Provider (PSP) tokens and the underlying primary account number to a global alias, making transactions unique to a specific card or customer regardless of location, channel, or PSP be merged. With zero data, companies can peel back the layers of customer activity — Abdelkader likened it to an onion — and build stronger customer relationships.