In a significant move to enhance the security and convenience of digital transactions in India, Mastercard has unveiled its Mastercard Digital Enablement Service (MDES) Token Connect platform. This innovative solution is set to revolutionize the way debit and credit card information is tokenised, offering a safer and more seamless online payment experience for users across the country.
A Leap Towards Secure Digital Payments
The MDES Token Connect platform is designed to facilitate card-on-file (CoF) and device-based tokenisation at the issuer bank level. This means that users can now tokenise their debit and credit cards through accessible channels like mobile and internet banking, ensuring a higher level of security for their online transactions.
Gautam Aggarwal, division president of Mastercard South Asia, emphasized the platform’s role in bolstering digital transaction safety. “The MDES Token Connect platform aims to bolster the safety of digital transactions, allowing cardholders to create and link tokens to their existing debit and credit cards across various ecommerce and digital wallet applications seamlessly through issuer channels,” Aggarwal stated.
Simplifying Integration for Issuer Banks
One of the standout features of the new platform is its ability to offer single integration for issuer banks to store cards across token requestors. This eliminates the need for multiple proprietary APIs between issuer banks and token requestors, streamlining the process and enhancing efficiency. Additionally, the platform promises enhanced security and immediate access for digital cardholders, addressing the critical need for secure online payment solutions.
RBI’s Role in Promoting Tokenisation
The launch of MDES Token Connect comes on the heels of the Reserve Bank of India (RBI)’s decision to expand the scope of card tokenisation to include internet and mobile banking channels. This expansion, aimed at generating CoF tokens based on explicit customer consent and Additional Factor of Authentication (AFA) validation, marks a significant step forward in the RBI’s efforts to secure digital payments.
Previously, the creation of a Card-on-File (CoF) token was limited to merchant apps or webpages, a practice that raised security concerns over the storage of sensitive financial information by merchants. In response to these concerns, the RBI introduced the rule of tokenisation in September 2021, allowing for the storage of a unique token instead of actual card details with merchants.
India’s Growing Adoption of Card Tokenisation
Since the RBI’s directive to tokenise cards for ecommerce transactions in October 2023, India has seen the issuance of approximately 560 million card tokens, according to a report by Visa. This rapid adoption underscores the country’s commitment to enhancing the security and efficiency of digital payments, with Mastercard’s MDES Token Connect platform poised to play a pivotal role in this ongoing transformation.