Token Service Provider
A Token Service Provider (TSP) is an entity within the payments ecosystem that provides payment tokens to any registered token requestors, such as OEM Pay wallets or e-commerce merchants who hold card data on their systems.
The Token Service Provider can be a wholly independent party from the payment network or payment processor, or alternatively can be integrated with a payment network or payment processor.
Token Service Providers are responsible for a number of functions. They oversee ongoing operation and maintenance of the Token Vault, deployment of security measures and controls, and the registration process of allowed Token Requestors.
In this new age of mobile payments, Token Service Providers should have the ability to issue and manage the entire lifecycle of payment credentials, implement tokenization to reduce payment card fraud and manage transactions to integrate with the existing authorization host by converting or validating cryptograms as well as performing processing checks, for example.