MasterCard Extends Tokenization with Support for Private-Label Cards for Use in E-Wallets (June 15, 2015)
MasterCard is extending its digital enablement services (MDES), which provide digital tokens, to store-branded credit cards and merchant card-on-file programs, including apps, e-commerce sites and recurring billing services. The tokenization service increases security for merchants and makes transactions more convenient for consumers by securing cardholder credentials, according to the payments network.
MDES enables issuing banks to replace MasterCard prepaid, credit and debit card account numbers with a secure “token,” or a 16-digit number that represents the existing card number on the front of a payment card. The tokens are unique to each merchant and carry extra security protection to prevent improper usage at any other location.
BJ’s Wholesale Club, Kohl’s and JCPenney will be among the first retailers to bring mobile payments to their private-label cardholders later this year. MasterCard also announced partnerships with some of the largest private-label credit card issuers in the U.S., including Synchrony Financial and Citi Retail Services, enabling consumers to use their credit cards within certain mobile payment and digital wallet services.