Tokenization: Securing the Digital Payments Ecosystem

| September 30, 2014 | Technology & Innovation

MC-CARD-EDIT02Payments across the globe are evolving in ways that are blurring the line between how consumers conduct transactions at brick-and-mortar retailers and in the online merchant community.

Mobile payments are a primary contributor to this evolution as well as the progressive convergence between the physical and digital worlds. In fact, this convergence has the potential to alter the way that consumers shop at physical and virtual merchant locations, as the nature of the interaction moves away from traditional plastic cards to payments-enabled Internet-connected devices and other forms of digital payment.

Technological innovation at MasterCard is driving solutions that promise to enable digital payments across a wide spectrum of transaction types, including payments initiated through digital wallets and near-field communication (NFC)-enabled devices such as smartphones, tablets, and “in-app” payments. The drive behind digital payments is not only fueled by convenience, but also by consumers’ desire for enhanced protection of their payment information. Among the solutions are payment “tokens” that are designed to replace a card’s primary account number (PAN) with a surrogate value. This substitution provides an additional layer of security that eliminates the need for merchants, digital wallet operators (DWOs), and other transaction participants to store account numbers.

Collaborative Development of the Payment Tokenization Specification

In October 2013, MasterCard and the other payment brands introduced a proposed framework for a new global specification for enhancing the security of digital payments using payment tokens. READ MORE


Ajeet Khurana
Ajeet Khurana
Ajeet Khurana wears many hats: author, angel investor, mentor, TEDx speaker, steering committee of the NASSCOM Start-Up Warehouse, Director of Founder Institute, Venture Partner with the seed initiative of a top Venture Capital firm, and former CEO of IIT Bombay’s business incubator, among others. Before all this, he was entrepreneurial twice in the field of education and web publishing. As a lecturer at the University of Texas at Austin, he taught e-commerce back in 1993, when the term "e-commerce" had not yet been coined. An undergrad in computer engineering from the University of Mumbai, and an MBA from the University of Texas, Ajeet is presently an active name in the startup ecosystem. From starting two ventures as a solopreneur, to helping a large number of startups with their go-to-market, he has never shied from getting his hands dirty. At the same time he has helped dozens of startups raise investment. He truly believes that small business owners are driving change in the world, and need to be facilitated as much as possible. Innumerable small businesses have gained from his attitude, vast professional networks, financial acumen and digital mindset.

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