MasterCard To Provide Tokenization for Private Label Credit Cards
MasterCard has become the first payment provider to extend tokenization services to store branded credit cards.
Tokenization is a unique security feature that credit card providers will adapt in the near future. Rather than collecting card data from their customers, merchants are given a random number – a “token” – that the card issuers use to verify a cardholder’s identity. The token is only used for one transaction. This can help eliminate the worry surrounding large breaches such as the ones at Target, Home Depot, and Neiman Marcus.
MasterCard will also be partnering with many of the largest private label card issuers in America to allow cardholders to enroll in mobile wallet services. Through these new partnerships, retailers such as BJ’s Wholesale Club, JCPenney and Kohl’s will be the first to provide digital payment solutions for their store branded credit cards. Cardholders will be able to utilize the digital payments technology to complete their transactions, like Apple Pay and the upcoming Android Pay app.
“MasterCard is helping merchants capitalize on mobile payments, ensure the best possible consumer experience for their consumers and encourage both repeat business and customer loyalty,” said Ed McLaughlin, chief emerging payments officer at MasterCard.