MasterCard to Tokenize MasterPass for Increased Security
MasterPass stores cardholders’ preferred payment and shipping information, which enables consumers to checkout without entering a full account number or other personal information. Since users do not need to enter personal information, the transaction is easier and more secure.
MasterCard decided to tokenize MasterPass at the request of card issuers that wanted the personal account numbers (PAN)–used for prepaid, debit and credit cards, as well as commercial cards–to be replaced with a secure “token.” This will be a new 16-digit number that represents the current PAN on the payment card. Tokens will be unique to each MasterPass wallet and have EMV security protection.
“MasterPass enables consumers to pay for the things they want with the security they demand, online or in-app, using any device,” said Ed McLaughlin, Chief Emerging Payments Officer at MasterCard. “In tokenizing MasterPass, we’re creating for consumers a secure ‘digital stream’ directly from their bank which can be connected through the online and mobile banking tools they already know.”
Since MDES was first launched in 2013, millions of MasterCard accounts have been tokenized so that they can be used with digital wallet services like Android Pay, Apple Pay and Samsung Pay. Currently, cardholders can use the “Buy with MasterPass” button” with more than 250,000 merchants worldwide.
The new tokenized MasterPass service will be available in the United States in 2016 and later expand to other MDES-enabled markets.
At the Money 20/20 Conference in Las Vegas next week, MasterCard will demonstrate a tokenized MasterPass wallet.