Global technical body EMVCo, which is jointly owned by American Express, Discover, JCB, MasterCard, UnionPay and Visa, has decided to advance payment tokenisation specifications to enable industry efficiencies and security enhancements for digital commerce.
EMVCo’s tokenisation specification will offer a consistent, secure and interoperable environment for the payments community to make digital payments when using a mobile handset, tablet, personal computer or other smart device.
Tokenisation will replace a traditional card account number with a unique payment token, and dictates how it can be used with a specific device, merchant, transaction type or channel.
Furthermore, merchants and digital wallet operators using tokenisation can get rid off storing card account numbers.
EMVCo executive committee chair, Dave Meadon, said, "The payments landscape is undergoing significant change, as new types of payments devices and experiences are developed to address the blurring of the physical and digital worlds.
"EMVCo’s continued work to define specifications for the payment industry will establish a reliable, interoperable and secure framework to enable ‘digital commerce’ to achieve its full potential."
In order to create the tokenisation specification, EMVCo will take into account the existing standards as well as add new data fields to offer better industry information about the transaction, which will boost transaction efficiency and enhance the consumer and merchant payment experience.
Besides assisting to thwart fraudulent card account use, EMVCo will also create a consistent approach to identify and verify the valid use of a token during payment processing such as authorisation, capture, clearing and settlement.