Mastercard and Google are set to launch a tokenisation service that will allow Google Pay users in India to make transactions using their Mastercard credit and debit cards.
The move will enable Mastercard cardholders to make payments through a digital token, eliminating the need for them to share their credit or debit card details such as card number, and expiry date with a merchant.
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This initiative leverages Mastercard Digital Enablement Service (MDES), which allows payment credentials to be tokenised and stored in mobile devices.
Storing card details as digital tokens ensures that even if the cardholder’s mobile device is misplaced, the details of the card remain secure.
The token can be updated by the card issuer allowing lost, expired, or replaced cards to be automatically updated with the merchant.
Mastercard South Asia & Country Corporate Officer division president Nikhil Sahni said: “Tokenisation enables an additional layer of security for payments, which reduces friction and improves the shopping experience.
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By GlobalData“It will redefine the current payment ecosystem by enabling a safe experience for the consumer and facilitate millions of mobile-first users from remote locations in migrating towards a cashless society. This initiative is an extension of Mastercard’s long-standing collaboration with Google and will go a long way towards enabling India’s digital economy.”
The tokenisation will enable Google Pay Android users to scan and pay across all Bharat QR-enabled merchants and tap-and-pay and make in-app transactions through their Mastercard debit and credit card.
To sign up for the new features, users are required to do a one-time setup by entering their card details and their OTP to add their card on the Google Pay app, the companies said.
Google Pay and NBU – APAC business head Sajith Sivanandan said: We are excited to collaborate with Mastercard for card tokenisation which will offer users state-of-the-art security for card payments.
“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. We are hopeful that the added simplicity and convenience will make an ever-larger base of users feel secure in making more payments digitally.”
Last year, Google added paysafecard, an eCash solution from payments platform Paysafe, as a new payment option on the Google Play Store in six additional European countries.
