MasterCard to add tokenisation support for private-label credit cards
MasterCard is set to provide tokenisation services to private label (store-branded) credit card issuers in a move to benefit merchants.
MasterCard is set to provide tokenisation services to private label (store-branded) credit card issuers in a move to benefit merchants with the latest digital payment innovations.
BJ’s Wholesale Club, Kohl’s and JCPenney are among the first retailers to offer tokenisation services to their private label cardholders later this year.
The company has also partnered with US private label credit card issuers such as Synchrony Financial and Citi Retail Services to allow consumers to use their eligible credit cards within participating mobile payment and digital wallet services.
According to MasterCard, the tokenisation support for private label credit cards will be offered through the MasterCard Digital Enablement Service (MDES). The technology will support contactless (NFC) payments through mobile devices at physical points of sale, and also within a mobile application.
MasterCard chief emerging payments officer Ed McLaughlin said: “MDES was developed to ensure that any connected device can be used to make purchases, and deliver the simplicity, security and convenience people have become accustomed to when using a MasterCard account of their choice.”
Currently, MDES provides tokenisation services for credit, debit, co-brand, prepaid and small business cards, with private label tokenisation beginning in the third quarter of 2015.