Adyen, JCB roll out card-on-file tokenization service

With the newly rolled out service, Adyen and JCB seek to equip ecommerce merchants with more security for credit card transactions. At the time of writing, Adyen was the first company to provide and implement JCB’s new technology both domestically and worldwide. By launching COF tokenization, the two companies plan to further scale the security of online payments, offering JCB’s cardholders and merchants more safety and efficiency.

Scaling security for merchants and consumers

With the wider adoption of cashless payments and ecommerce transactions, Japan witnessed a substantial expansion in credit card fraud rates. Introducing COF tokenization came as a response to this surge, as the service refers to payment details, including card numbers and expiration dates, which are stored by merchants with cardholders’ consent. The company’s solution substitutes the JCB-branded COF data with an anonymised secure number, with sensitive card details being tokenized and not stored in the merchant’s database. Through this, the risk of data breaches is minimised, and the network token is leveraged to identify the customer for secure payment.

Besides reducing the risk of data breaches, tokenization provides customers with more convenience, as the COF token procedure ensures that the token is associated with the latest card information. This mitigates the need for users to update their card information, in turn supporting an optimal payment process and scaling the transaction authorisation rates.

Furthermore, commenting on the news, representatives from Adyen underlined their company’s commitment to making tokenization technology available across several payment platforms, including mobile payments, to improve security for customers and scale authorisation rates.

The move with Adyen follows JCB’s partnership with First Cash Solution, an integrated payment provider. The two companies joined forces to increase JCB card acceptance throughout Germany. The collaboration aimed to simplify ecommerce transactions and expand payment options for all merchants with J/Secure, the firm’s authentication programme for card-not-present transactions, since its launch in 2024.