Mastercard, the payments company, announced Tuesday (Feb. 27) at the Mobile World Congress that Flipkart, the Indian online grocer, is the first merchant in the Asia Pacific region to roll out Mastercard Digital Enablement Services for Merchants.
In a press release, Mastercard said the service enables card issuing banks to swap out Mastercard credit, debit and prepaid card primary account numbers with secure digital tokens. The tokens let merchants offer enhanced security and customer experiences, Mastercard said in the press release.
“Through the implementation of the Mastercard Digital Enablement Services, we are happy to introduce our customers to a simple, convenient and secure payment method, create a safe ecosystem and provide superior experiences for them,” said Ranjith Boyanapalli, Vice President of Product at Flipkart said in the press release.
According to Mastercard storing card information in apps and online is popular with merchants and consumers but the card numbers raise security concerns. MDES provides an extra layer of security by block the transaction if the token is compromised. That removes any chance of fraud, Mastercard said in the press release. What’s more, Mastercard said it have cardholders the choice and peace of mind to make digital payments that are secure from connected devices via a tap, touch or click. Customers don’t need to update the tokens stored with the merchants.
“We are delighted to partner with Flipkart, the pioneer of India’s e-commerce Industry, to roll out the industry-leading MDES for merchants. Our research indicates that security of payment and convenience are some of the key factors considered during online shopping by consumers. Mastercard tokenization will eliminate a significant ‘hassle factor’ for consumers and offer enhanced security,” said James Anderson, Executive Vice President, Digital Payment Products at Mastercard in the same press release.