Mastercard has joined hands with Google to roll out tokenization on Google Pay that will enable its users to transact via secure digital token, without having to share their credit or debit card details with a merchant.
Tokenization is the process of replacing sensitive data with unique identification symbols that retain all the important information without compromising on the security. Currently, the tokenization solutions are live on Axis Bank, Federal Bank, HDFC Bank, HSBC, RBL Bank and SBI cards.
“Tokenization enables an additional layer of security for payments, which reduces friction and improves the shopping experience. It will redefine the current payment ecosystem by enabling a safe experience for the consumer,” said Nikhil Sahni, Division President, South Asia and Country Corporate Officer, Mastercard.
Google Pay users will be able to scan and pay on QR-enabled merchant devices, or make in app transactions through their Mastercard based credit and debit cards.
The users will have to first conduct a one-time setup by entering their card and OTP details onto their Google Pay app, post which the Mastercard Digital Enablement Service (MDES) will tokenise and store the details in the mobile devices.
Even if the cardholder’s mobile device is misplaced, the details of the card will remain secure owing to them being stored as digital tokens. The tokens can then be updated by the card issuer, which will allow for lost, expired or replaced cards to be updated with the merchant.
“This is already live for several credit card issuers on Mastercard, and we are working closely with other banking partners to further expand the adoption of tokenization in India,” said Sajith Sivanandan, Business Head: Google Pay and NBU – APAC.
On November 3 this year, Mastercard partnered with credit card management app Cred to offer tokenized card services.
Last week, payments solutions providers Worldline and PhonePe also launced their tokenization solutions in partnership with companies such as Mastercard, Visa and RuPay, among others.