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Tokenization of eCommerce – balancing convenience with security

14th of November 2018
Blog

Christophe Zehnacker, Vice President of Market Product Management at Mastercard discusses customer engagement and gives us a teaser on the topic he will be touching upon at Mobey Day Vienna on 4-5 December. Event hosted by Erste Group. Join us to hear more from Mastercard and other leading industry players: https://www.mobeyforum.org/mobey-day/

  1. What is key when it comes to customer engagement? User experience is (almost) everything, balancing convenience with security. Today this has become a reality as more and more card-based payments are moving to digital.
  2. How does one offer security without compromising convenience? Very simple. By using the latest technologies, and for this we mean payment card tokenization in combination with strong customer authentication using the latest EMV 3DS standards for eCommerce transactions.
  3. Tokenization of eCommerce – what makes Mastercard unique in this space? Mastercard’s vision is to tokenize the world, including the world of eCommerce as rapidly as possible. This will be achieved in two ways: on one side by driving all Mastercard issuers to support eCommerce tokenization by 1.1.2020, either using the Mastercard tokenization service MDES or a new MDES on-behalf of service soon coming to the market; on the other side, working with the world’s largest merchants and Payment Service Providers to connect them to our MDES tokenization platform.  Great progress is now being seen in the space (https://newsroom.mastercard.com/press-releases/shopping-online-gets-a-security-upgrade-from-mastercard/ ) The benefits include EMV like security for all eCommerce transactions by getting rid of FPANs, increased approval rates, better checkout conversation rates due to lower abandonment rates.  Mastercard is also a key contributor to the new Secure Remote Commerce Checkout standard being brought to the market in 2019 – using tokenized credentials for guest checkout.
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