Mastercard launches MDES Token Connect, enabling banks to easily offer card tokenization through internet and mobile banking.
Key Features
- Issuer-centric: Simplifies integration for banks, eliminating the need for multiple APIs.
- Seamless Experience: Cardholders can create and link tokens to cards across platforms through familiar banking channels.
- Enhanced Security: Tokens replace actual card details, minimizing data breaches.
- Wider Usage: Expands tokenization beyond merchant apps to internet and mobile banking transactions.
Background
- RBI directive requires tokenization for e-commerce transactions since September 2021.
- Initial implementation limited token creation to merchant apps/websites.
- Mastercard’s platform aligns with RBI’s expansion of tokenization to banking channels.
Benefits of Mastercard
- Increased convenience: Customers can easily tokenize cards through trusted banking apps.
- Improved security: Reduced risk of data breaches by replacing card details with tokens.
- Wider digital adoption: More secure online transactions could encourage broader e-commerce use.
Impact of Mastercard
- Streamlines tokenization process for banks and merchants.
- Enhances online transaction security for cardholders.
- Potentially boosts cashless transactions in India.
Additional Notes
- Over 560 million card tokens issued in India since October 2023.
- Platform launch aligns with Mastercard’s commitment to secure and inclusive digital payments.
Overall, Mastercard’s MDES Token Connect platform offers a convenient and secure way for banks and merchants to comply with RBI regulations and enhance the safety of online transactions in India.
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