Mastercard, Google Pay offer tokenisation for card-based payments

Mastercard and Google announced the rollout of tokenisation for Google Pay users, who will be able to make hassle-free transactions using their Mastercard credit and debit cards. Through tokenisation, Mastercard cardholders will be able to make payments through a secure digital token without having to share their credit or debit card details such as card number, expiry date etc.

Google Pay Android users will be able to scan and pay across all Bharat QR-enabled merchants, tap-and-pay, and make in-app transactions through their Mastercard debit and credit card. To register, users can do a one-time setup by entering card details and OTP to add their card on the Google Pay app.

Mastercard Digital Enablement Service (MDES) allows payment credentials to be securely stores in the mobile devices. “When making a purchase with a Mastercard debit or credit card using Google Pay, cardholders and merchants will enjoy a similar experience as a regular card-based transaction with enhanced safety and convenience. Even if the cardholder’s mobile device is misplaced, details of the card still remain secure as they are stored as digital tokens,” the company stated.

If a card is lost, expired or replaced, the user can update the token.

Sajith Sivanandan, Business Head at Google Pay and NBU - APAC said, “This (card tokenisation) 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.”

“Tokenisation 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 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,” stated Nikhil Sahni, Division President, South Asia & Country Corporate Officer, Mastercard.

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