The reciprocal tokenization agreement allows Visa to request tokenized Mastercard payment credentials from Mastercard for provisioning into Visa Checkout.
Similarly, it enables Mastercard to request tokenized Visa credentials from Visa for provisioning into Masterpass.
MasterCard emerging payments division platforms group executive James Anderson said in a blog post: “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.”
In October 2014, Mastercard announced the launch of its tokenization service, MDES.
Since the roll out, the company has seen almost 700 issuers around the globe connecting to MDES.
Mastercard also started to tokenize Mastercard credentials into Masterpass this year.
Anderson said: “The Masterpass vision is to support all forms of commerce to address the full range of merchant experiences and consumer needs.
“And as part of this vision, we created Masterpass as an open wallet enabling card-issuing banks and consumers to store their Mastercard-branded cards as well as those they have that are issued on other networks, including Visa.”
The new partnership is expected to result in enhancing fraud prevention services to banks, merchants and consumers.
Image: The new partnership is expected to result in enhancing fraud prevention services. Photo courtesy of MasterCard.
