Rivals Visa and MasterCard have teamed to accelerate the adoption of tokens in their digital wallets- Visa Checkout and Masterpass.
The reciprocal tokenization deal allows Visa to request tokenized MasterCard payment credentials from MasterCard for provisioning into Visa Checkout, and for MasterCard to request tokenized Visa credentials from Visa for provisioning into Masterpass.
Allowing each network to request tokenised payment credentials from the other network will ensure that each network's wallet solutions can continue to stay open to other card brands, the global card networks said.
MasterCard emerging payments division platforms group executive James Anderson in a blog post said: “By allowing each network’s respective wallet service to leverage the token solutions of the other network, this agreement will ensure that each network’s wallet solutions can continue to stay open – and can add the extra security of using tokens in place of real card numbers.”
“We’ve seen a fantastic response to Masterpass from both banks and merchants alike, and see this agreement as another positive development in the product’s continued adoption.”
MasterCard announced the launch of its tokenization service, MDES, in October of 2014. Since then, the company has seen almost 700 issuers around the globe connecting to MDES.