Visa and Mastercard have signed a tokenization agreement to safeguard banks, merchants and consumers
To fight against a growing tide of digital fraud, Visa and Mastercard have agreed to a tokenization deal. The agreement will enable Mastercard to request tokenized Visa credentials from Visa for provisioning into Masterpass and also allow Visa to request tokenized Mastercard payment credentials for Visa Checkout.
Securing cardholder credentials has never been more important. Tokenization is a security process that substitutes sensitive data with a non-sensitive data. When a card or mobile payment gets made, a card number passes through several intermediaries during the authorisation process. The approval process increases the risk of fraud as card data can be seized at any number of points. Tokenization prevents this from occurring by storing the original card number in a secure vault and substituting it with a unique number that is unusable to cyber criminals.
The agreement between Visa and Mastercard is a step in the right direction in the global fight against cyber crime.
Visa said “With each network now able to request tokenized payment credentials from the other network, this agreement will benefit our merchants, our issuers and consumers—many of whom have multi-brand relationships. This agreement will expand tokenization availability to merchants and issuers, helping further encourage the use of tokens for Visa Checkout instead of personally-identifiable account numbers, and ultimately extending the proliferation of secure, digital payments.”
Mastercard said “By allowing each network’s respective wallet service to leverage the token solutions of the other network, this agreement will ensure that each network’s wallet solutions can continue to stay open – and can add the extra security of using tokens in place of real card numbers. We’ve seen a fantastic response to Masterpass from both banks and merchants alike, and see this agreement as another positive development in the product’s continued adoption.”