MasterCard to provide tokenization to store-branded card issuers
PURCHASE, N.Y. (6/18/15)--MasterCard will provide tokenization services to private-label credit card issuers, giving retailers the ability to offer mobile payments to their store-branded cardholders later this year.
BJ’s Wholesale Club, Kohl’s and JCPenney will be among the first retailers to bring mobile payments to their private-label cardholders. Synchrony Financial and Citi Retail Services have also signed agreements with MasterCard to offer mobile payments to their private-label cardholders.
“MasterCard is helping merchants capitalize on mobile payments, ensure the best possible consumer experience for their consumers and encourage both repeat business and customer loyalty,” said Ed McLaughlin, MasterCard chief emerging payments officer.
Tokenization support for private-label issuers is enabled through the MasterCard Digital Enablement Service (MDES), which allows a connected device to be securely used for everyday shopping and payments.
MDES supports contactless, near-field communication payments with a mobile device at a physical point of sale and from within a mobile app. Transactions are secured using industry-standard EMV cryptography and take full advantage of secure payments technology.