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Johannesburg – Visa, MasterCard and American Express have introduced a proposed framework for a new global standard to enhance the security of digital payments.
They also want to simplify the purchasing experience when shopping on a mobile phone, tablet, personal computer or other smart device.
According to an August 2013 report from the US Census Bureau, roughly 6% of all retail sales are conducted digitally, up nearly 200% since the first quarter of 2004.
As the number of digital transactions increased, so has consumer demand for increased protection of their payment information.
The proposed standard would meet this consumer demand and allow the traditional account number to be replaced with a digital payment “token” for online and mobile transactions.
With a token, consumers will no longer be required to enter an actual account number when shopping online or on a smart device.
Tokens provide an additional layer of security and eliminate the need for merchants, digital wallet operators or others to store account numbers.
To ensure consistency across the globe, the proposed standard used to generate tokens would be based on existing industry standards and would be available to all payment networks and other payment participants.
Key elements of the proposed standard would include new data fields to provide richer information about the transaction, consistent methods to identify and verify a consumer before replacing the traditional card account number with a token and a common standard designed to simplify the process for merchants for contactless, online or other transactions.
“For more than five decades the payments industry has relied on standards to safely and consistently process payments,” said Jim McCarthy, global head of innovation and strategic partnerships at Visa.
“This continued transition from plastic cards to digital is all about providing consumers with the ability to easily and safely make a purchase."
They would no longer need to store their actual card account number when shopping online or with a smart device. The token would serve as that stand-in," according to Ed McLaughlin, chief emerging payments officer at MasterCard.
“What we're introducing today is comparable to how the industry came together to develop and use the magnetic stripe, EMV and NFC on a global scale.”
“By working together to form a common global standard for online and mobile shopping, we will be able to provide enhanced security, interoperability and consistency for all participants within the digital payments ecosystem,” said Mike Matan, head of global network business at American Express.
- Fin24
They also want to simplify the purchasing experience when shopping on a mobile phone, tablet, personal computer or other smart device.
According to an August 2013 report from the US Census Bureau, roughly 6% of all retail sales are conducted digitally, up nearly 200% since the first quarter of 2004.
As the number of digital transactions increased, so has consumer demand for increased protection of their payment information.
The proposed standard would meet this consumer demand and allow the traditional account number to be replaced with a digital payment “token” for online and mobile transactions.
With a token, consumers will no longer be required to enter an actual account number when shopping online or on a smart device.
Tokens provide an additional layer of security and eliminate the need for merchants, digital wallet operators or others to store account numbers.
To ensure consistency across the globe, the proposed standard used to generate tokens would be based on existing industry standards and would be available to all payment networks and other payment participants.
Key elements of the proposed standard would include new data fields to provide richer information about the transaction, consistent methods to identify and verify a consumer before replacing the traditional card account number with a token and a common standard designed to simplify the process for merchants for contactless, online or other transactions.
“For more than five decades the payments industry has relied on standards to safely and consistently process payments,” said Jim McCarthy, global head of innovation and strategic partnerships at Visa.
“This continued transition from plastic cards to digital is all about providing consumers with the ability to easily and safely make a purchase."
They would no longer need to store their actual card account number when shopping online or with a smart device. The token would serve as that stand-in," according to Ed McLaughlin, chief emerging payments officer at MasterCard.
“What we're introducing today is comparable to how the industry came together to develop and use the magnetic stripe, EMV and NFC on a global scale.”
“By working together to form a common global standard for online and mobile shopping, we will be able to provide enhanced security, interoperability and consistency for all participants within the digital payments ecosystem,” said Mike Matan, head of global network business at American Express.
- Fin24
