The new specification will help provide the payments community with an interoperable environment to make digital payments when using a mobile handset, tablet, personal computer or other smart device.
Tokenisation is the process of replacing a traditional card account number with a unique payment token that is restricted in how it can be used with a specific device, merchant, transaction type or channel. When using tokenisation, merchants and digital wallet operators do not need to store card account numbers; instead they are able to store payment tokens that can only be used for their designated purpose. The tokenisation process happens in the background in a manner that is expected to be invisible to the consumer.
EMVCo, which is collectively owned by American Express, Discover, JCB, MasterCard, UnionPay and Visa, will increase its focus from chip-based payments to include tokenisation. The new specification will complement the existing EMV Specifications to deliver a cohesive global payments framework that supports an evolving range of secure payment methods, technologies and acceptance environments in both card-present and card-not-present ecosystems.
EMVCo’s initiative to advance the tokenisation specifications follows the joint communication from MasterCard, Visa and American Express which proposed an initial framework for industry collaboration to standardise payment tokenisation. EMVCo will now build on this framework with collective input from all its members and the industry as a whole.
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