India-based Flipkart, an electronic commerce company, has partnered with Mastercard to adopt the ‘Mastercard Digital Enablement Services (MDES) for Merchants’ for improved security during online payments.
The MDES solution is designed to provide card issuing banks with means to replace the primary account number (PAN) numbers of Mastercard credit, debit or prepaid cards with secure digital tokens.
Mastercard executive vice-president of Digital Payment Products, James Anderson said: “Our research indicates that security of payment and convenience are some of the key factors considered during online shopping by consumers.
“Mastercard tokenisation will eliminate a significant ‘hassle factor’ for consumers and offer enhanced security.”
Claimed to be the first of its kind in the Asia Pacific region, the partnership aims to reduce fraud on e-commerce channels as MDES blocks the transaction when a token compromise occurs.
In case of loss of a device or physical card compromise, the link established between the tokens and the card/device in MDES can be broken.
MDES is additionally said to enhance a customer’s experience as the link can also be reissued for a new token or card, can be used with various devices and does not require any update upon change of card number or expiry date.
Flipkart vice-president of Product, Ranjith Boyanapalli said: “Through the implementation of the MDES, 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.”