Visa, MasterCard and American Express are calling on other industry figures to join them in their support of a new framework for the global token standard, which they believe will make life simpler and safer for customers shopping online.
The framework would see issuers, merchants and digital wallet providers able to ask for a token, so that when a customer goes to make an online or mobile transaction, the token would be used in place of a traditional card account number to process, authorise, clear and settle payment. The standard used to generate the tokens would be based on existing industry standards and would be available across all networks and wider market participants.
Ed McLaughlin, chief emerging payments officer, MasterCard, says: “This continued transition from plastic cards to digital is all about providing consumers with the ability to easily and safely make a purchase. They would no longer need to store their actual card account number when shopping online or with a smart device; the token would serve as that stand-in.”
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.
Payments for digital and physical goods made mobile operating system-based payments platforms like Apple Pay and Android Pay are expected to boom in the next few years according to new analysis from Juniper.