MasterCard to Offer Tokenization to CNP Merchants
June 18, 2015
This week, MasterCard said it will offer tokenization services to merchants with app, e-commerce and recurring-billing programs. Because the one-touch purchase ability of apps and e-commerce sites and the automatic nature of subscription payments all require storing card information, the Purchase, N.Y.-based card network said it is important for businesses to protect their customers by tokenizing that information. In addition to protection, MasterCard said the expansion of its Digital Enablement Services will also automatically update a customer’s information when the card account changes due to expiration or a lost or stolen card.
“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 at 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.”