Visa, Mastercard and American Express in New Tokenization Standard Announcement
Tuesday, 5 November 2013
Visa, MasterCard and American Express have today announced their joint proposal for a new standard in global payments , designed to enhance the security of digital payments, focusing primarily on payments made using a mobile phone, tablet or other device capable of being payment enabled, including applications that link with user's credit, debit and/or prepaid cards.
The proposal, which it is hoped will usher in a new generation of payment product, is formed around a set of key principles that help to lead towards are tokenization standard.
• Broad-based acceptance tokens must be the replacement for traditional card payments
• Ensuring any new tokenization standard works to allow existing or future digital wallet operators and mobile payment providers to continue to develop innovative payment products
• Increased focus on security through the use of tokens, limited for use within specific environments
“For more than five decades, the payments industry has relied on standards to safely and consistently process payments,” said Jim McCarthy, Global Head of Innovation and Strategic Partnerships, Visa Inc.
“As more consumers make purchases with mobile phones, tablets and PCs, we are committed to showing industry leadership in the development of new standards that offer the same interoperability, reliability and security as traditional card payments.”
“This continued transition from plastic cards to digital is all about providing consumers with the ability to easily and safely make a purchase. They would no longer need to store their actual card account number when shopping online or with a smart device; the token would serve as that stand-in,” said Ed McLaughlin, Chief Emerging Payments Officer, MasterCard.
Source: MasterCard Press Release – “MasterCard, Visa and American Express Propose New Global Standard to Make Online and Mobile Shopping Simpler and Safer” – October 1, 2013