Visa, MasterCard, and American Express have announced their new proposed framework.
The three credit card giants, Visa, MasterCard and American Express have unveiled a newly proposed framework for a global standard that would boost digital and mobile payments security, and that would simplify the experience of completing a transaction while shopping over a smartphone, tablet, laptop, or other connected device.
The lack of a standard of this nature has been considered a considerable barrier to m-commerce.
By developing a global standard, it will make it possible for a whole new generation of digital and mobile payments products to be created and implemented, while making sure that they remain compatible with the infrastructures that are already in existence.
The central elements of the token standard creation for online and mobile payments includes the following:
• Making certain that tokens have widespread acceptance as a traditional plastic card replacement;
• Making it possible for all current ecosystem participants will be able to route and pass through the tokens;
• Enabling mobile payments operators such as digital wallets and smartphone app developers to be able to easily and securely create new and innovative transaction products.
• Using specific use tokens to improve the security available to cardholders.
According to the Visa Inc. global head of innovation and strategic partnerships, Jim McCarthey – a Keynote speaker at the Money 2020 event – “For more than five decades, the payments industry has relied on standards to safely and consistently process payments.” He added that “As more consumers make purchases with mobile phones, tablets and PCs, we are committed to showing industry leadership in the development of new standards that offer the same interoperability, reliability and security as traditional card payments.”
Another Money 2020 keynote speaker, MasterCard chief emerging payments officer, Ed McLaughlin pointed out that giving consumers the ability to safely and easily make a mobile payments purchase is the key to keeping up the transition from plastic credit cards into digital transactions. This would mean that the shopper would no longer need to provide a card or account number in order to complete a purchase over a smart device.