Visa, MasterCard to act on mobile security

Visa, MasterCard to act on mobile security

10 MAR 2014

Visa and MasterCard have unveiled a new group to improve payments security, including for mobile and online transactions.

The initial focus will be on adoption of the more secure EMV chip technology for physical cards in the US, but the new group’s second priority is to promote alternative solutions such as so-called tokenisation and point-to-point encryption.

Tokenisation replaces a traditional account number with a digital payment code or token, so introducing an additional layer of security.

Supporters hope consumers will be reassured if they don’t have to input their account numbers to authorise mobile or online transactions.

The credit card giants have previously pledged to launch a tokenisation scheme in the second half of 2014 with rival American Express.

They have billed the latest initiative as “cross-industry” and listed participants as banks, credit unions, acquirers, retailers, point-of-sale vendors and industry trade groups. Despite their apparent confidence about these participants, no other companies were named.

“The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security,” said Ryan McInerney (pictured), president of Visa.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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