With American Express Token Service, traditional card account numbers are replaced with unique ‘tokens’, which can then be used to complete payment transactions online, in a mobile application or in-store with a mobile Near Field Communication (NFC)-enabled device. By using tokens, merchants and digital wallet operators will no longer need to store consumers’ sensitive payment account information in their systems. In addition, tokens can be assigned for use with a specific merchant, transaction type or payment device to provide further protection against fraud.
American Express also announced that it has developed network specifications for Host Card Emulation (HCE). American Express’ HCE specifications provide its card-issuing partners with security options and solutions for payments made with mobile NFC-enabled devices that support Android OS KitKat. With HCE, card issuers use a cloud server to store their customers’ card account details, which can be transmitted from the cloud server to an NFC-enabled mobile device and then to a point-of-sale terminal.
American Express is a global services company, providing customers with access to products, insights and experiences. Since 1996, American Express has been pursuing a strategy of opening its merchant network and card product portfolio to third party issuers around the world.
In recent news, China UnionPay and American Express have signed an agreement for both companies to explore the expansion of their current partnership.
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