MasterCard Continues to Define the Future of Digital Payments with Tokenization Support for App, eCommerce & Recurring Paymen...
June 15 2015 - 7:30AM
Business Wire
MasterCard Digital Enablement Service (MDES)
Helps Merchants Easily Increase Security and Consumer Convenience
when Storing Card Numbers
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MasterCard today announced it will offer tokenization services
to merchants with app, eCommerce, and recurring billing
card-on-file programs, further protecting consumers and increasing
convenience when storing MasterCard cards in merchant databases. By
expanding its Digital Enablement Services (MDES) to serve
merchants’ needs, MasterCard continues to lead the industry in
securing cardholder credentials – no matter where they are
stored.
To speed and simplify the purchase process in apps and online,
as well as for subscription-based and recurring payments like
streaming music and video services, club dues, and utility bills,
consumers have allowed thousands of merchants to store billions of
credit and debit card numbers on their behalf. According to
MasterCard Advisors, a typical consumer may have their card number
stored in five or more locations.
In addition to the inherent security risks in the storage of
card numbers, when a card account number changes, consumers are
faced with the daunting task of updating payment information across
all of these locations. This typically requires them to remember
where their card has been stored, as well as the username and
password they created when they stored it. If they are unsuccessful
in changing the card number, transactions will fail – resulting in
potential interruption in services, lower customer satisfaction and
lost sales for the merchant.
The new MasterCard program will enable merchants to harness the
power of MDES to increase security and reduce declines for
merchants that store card numbers. Through MDES, MasterCard will
enable the card issuing banks to replace MasterCard credit, debit
and prepaid card account numbers with a secure “token”: a new
16-digit number that represents the existing card number on the
front of a payment card. The tokens will be unique to each merchant
and carry extra security protection that will prevent improper
usage at any other location, providing additional security and
peace of mind for consumers and merchants alike.
The MDES program was designed to be fully compatible with
existing acquirer and payment service provider (PSP) “local” token
and encryption solutions, while greatly enhancing the overall
network security and consumer convenience. Beyond enabling greater
security, when a consumer’s card number or its expiration date
changes, the tokens stored with all of their various merchants do
not have to be updated, allowing for seamless, ongoing
payments.
“Merchants continue to innovate in many different and compelling
ways for consumers to buy from them, including in app, eCommerce,
recurring and subscription-based payment environments. These new
experiences all involve storing card numbers,” said Ed McLaughlin,
chief emerging payments officer, MasterCard. “We are very excited
to announce the extension of our industry-leading MDES program to
make all of these merchant shopping environments more secure and
convenient for their customers using MasterCard tokens, seamlessly
enhancing the systems merchants and acquirers already have in
place, and eliminating a significant ‘hassle factor’ for consumers
when card numbers change.”
Since the announcement of MDES in 2013, millions of MasterCard
accounts have been tokenized for use in popular digital wallet
services. MDES currently provides tokenization services for credit,
debit, co-brand, prepaid and small business cards. Private label
tokenization, announced earlier today, will begin in the third
quarter of this year. Tokenization services for app, eCommerce, and
recurring billing card-on-file programs will be available to U.S.
and Canadian merchants later this year and expand globally across
all MDES-enabled markets.
About MasterCard
MasterCard, www.mastercard.com, is a technology company in
the global payments industry. We operate the world’s fastest
payments processing network, connecting consumers, financial
institutions, merchants, governments and businesses in more than
210 countries and territories. MasterCard’s products and solutions
make everyday commerce activities – such as shopping, traveling,
running a business and managing finances – easier, more secure and
more efficient for everyone. Follow us on
Twitter @MasterCardNews, join the discussion on
the Beyond the Transaction
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the Engagement Bureau.
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Media:MasterCardSarah Ely,
914.249.6714sarah_ely@mastercard.com
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