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Mastercard (MA) Offers Tokenization to Google Pay Users in India
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Mastercard Incorporated (MA - Free Report) recently joined forces with one of the most renowned multinational companies Alphabet. The move intends to introduce tokenization across India, which will offer Google Pay users seamless and secure card-based transactions utilizing MA’s credit and debit cards. The facility is already on for numerous credit card issuers on the Mastercard network, some of which are Axis Bank, Federal Bank and HDFC Bank.
Shares of Mastercard gained 1.9% on Dec 22.
With this latest collaboration in place, the Android users choosing Google Pay and possessing a Mastercard card can use a secure digital token and make payments without the need to share confidential card details with a merchant. Equipped to conduct safe digital payments, the above-mentioned users can either scan and pay at Bharat QR-enabled merchants, avail the tap-and-pay option or make transactions through an app.
The latest partnership seems a time opportune one since the growing inclination toward digital means has necessitated the dire need for contactless payment methods. While digitization became the new way of life, there remains a simultaneous risk of severe payment frauds. The tokenization process can capitalize on the prevalent scenario as it provides added security features, which minimize the possibility of failed transactions and upgrade the shopping experience.
The Mastercard Digital Enablement Service (MDES) solution safely tokenizes cardholders’ payment credentials, storing the same in their mobile devices. Misplacement or loss of the device will no longer be an alarming concern for a cardholder as the card details will remain stored as digital tokens, which can be subsequently retrieved by the card issuer.
The latest initiative reinforces Mastercard’s sincere efforts to utilize advanced technologies and transform the digital payments landscape. With increased levels of security for every digital payment, the cardholders residing in remote areas can also utilize their mobile devices and seamlessly enter the booming cashless ecosystem.
Mastercard also aims to leverage the robust prospects prevalent in India’s digital economy with alliances similar to the latest one. India seems an attractive market for MA, given the growing e-commerce businesses, inclination of consumers toward online shopping, elevated Internet usage, increased smartphone usage and several government initiatives to boost the nation’s digital growth.
Per Statista, the leading provider of market and consumer data, the transaction value in the Indian e-commerce market is anticipated to witness a CAGR of 8.9% over the 2021-2025 forecast period.
With a comprehensive portfolio of fraud detection solutions for varied industries, Mastercard made consistent efforts to enhance its suite of digital identity services. In June 2021, MA acquired Ekata to extend its identity verification efforts while assuring safe and secure digital transactions for merchants and customers.
Similar to Mastercard, other companies like Visa Inc. (V - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and American Express Company (AXP - Free Report) are continuously rolling out a diverse range of digital solutions to protect merchants and consumers from fraudulent activities.
Visa launched the Advanced Identity Score in 2020 to minimize digital identity frauds and reduce operational costs linked with identity-related forgeries. V continues to invest in technology for minimizing the impact of fraud, and safeguarding consumer and merchant-oriented information. These efforts established V as a leading fraud prevention solutions provider in the payments market.
PayPal made substantial investments to use blockchain technology for boosting digital identity capabilities. PYPL’s risk management and tokenization ensure legitimacy of transactions and prevent illegal or fraudulent transactions. In May 2021, PYPL partnered Arkose Labs to combat security threats and fraud across the Honey shopping and rewards platform of the former.
American Express is making an all-out effort to enhance its digital solutions suite for assisting its merchants and Card members across the globe. In June 2021, AXP collaborated with online fraud-prevention companies, namely Accertify, Microsoft and Riskified. The move paved the way for integrating AXP’s fraud identification solution Enhanced Authorization into the fraud management platforms of its three partners.
Image: Bigstock
Mastercard (MA) Offers Tokenization to Google Pay Users in India
Mastercard Incorporated (MA - Free Report) recently joined forces with one of the most renowned multinational companies Alphabet. The move intends to introduce tokenization across India, which will offer Google Pay users seamless and secure card-based transactions utilizing MA’s credit and debit cards. The facility is already on for numerous credit card issuers on the Mastercard network, some of which are Axis Bank, Federal Bank and HDFC Bank.
Shares of Mastercard gained 1.9% on Dec 22.
With this latest collaboration in place, the Android users choosing Google Pay and possessing a Mastercard card can use a secure digital token and make payments without the need to share confidential card details with a merchant. Equipped to conduct safe digital payments, the above-mentioned users can either scan and pay at Bharat QR-enabled merchants, avail the tap-and-pay option or make transactions through an app.
The latest partnership seems a time opportune one since the growing inclination toward digital means has necessitated the dire need for contactless payment methods. While digitization became the new way of life, there remains a simultaneous risk of severe payment frauds. The tokenization process can capitalize on the prevalent scenario as it provides added security features, which minimize the possibility of failed transactions and upgrade the shopping experience.
The Mastercard Digital Enablement Service (MDES) solution safely tokenizes cardholders’ payment credentials, storing the same in their mobile devices. Misplacement or loss of the device will no longer be an alarming concern for a cardholder as the card details will remain stored as digital tokens, which can be subsequently retrieved by the card issuer.
The latest initiative reinforces Mastercard’s sincere efforts to utilize advanced technologies and transform the digital payments landscape. With increased levels of security for every digital payment, the cardholders residing in remote areas can also utilize their mobile devices and seamlessly enter the booming cashless ecosystem.
Mastercard also aims to leverage the robust prospects prevalent in India’s digital economy with alliances similar to the latest one. India seems an attractive market for MA, given the growing e-commerce businesses, inclination of consumers toward online shopping, elevated Internet usage, increased smartphone usage and several government initiatives to boost the nation’s digital growth.
Per Statista, the leading provider of market and consumer data, the transaction value in the Indian e-commerce market is anticipated to witness a CAGR of 8.9% over the 2021-2025 forecast period.
With a comprehensive portfolio of fraud detection solutions for varied industries, Mastercard made consistent efforts to enhance its suite of digital identity services. In June 2021, MA acquired Ekata to extend its identity verification efforts while assuring safe and secure digital transactions for merchants and customers.
Similar to Mastercard, other companies like Visa Inc. (V - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and American Express Company (AXP - Free Report) are continuously rolling out a diverse range of digital solutions to protect merchants and consumers from fraudulent activities.
Visa launched the Advanced Identity Score in 2020 to minimize digital identity frauds and reduce operational costs linked with identity-related forgeries. V continues to invest in technology for minimizing the impact of fraud, and safeguarding consumer and merchant-oriented information. These efforts established V as a leading fraud prevention solutions provider in the payments market.
PayPal made substantial investments to use blockchain technology for boosting digital identity capabilities. PYPL’s risk management and tokenization ensure legitimacy of transactions and prevent illegal or fraudulent transactions. In May 2021, PYPL partnered Arkose Labs to combat security threats and fraud across the Honey shopping and rewards platform of the former.
American Express is making an all-out effort to enhance its digital solutions suite for assisting its merchants and Card members across the globe. In June 2021, AXP collaborated with online fraud-prevention companies, namely Accertify, Microsoft and Riskified. The move paved the way for integrating AXP’s fraud identification solution Enhanced Authorization into the fraud management platforms of its three partners.
Shares of Mastercard have gained 6.3% in a year against the industry’s decline of 18.8%. MA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While shares of Visa and American Express have gained 4.4% and 38.4%, respectively, in a year, the PayPal stock has lost 19.7% in the same time frame.