Mastercard Accelerates the Adoption of Tokenization Across Latin America and the Caribbean
Miami, Florida | December 3, 2020
As digital payments become more prevalent in Latin America and the Caribbean (LAC), Mastercard continues to work with its partners to create a more connected and secure e-commerce ecosystem. Today, the company announced that more than half of its transaction volume in the region is now ready to be tokenized, helping make digital payments offer simple, seamless and secure for consumers in the region. The news comes on the heels of new signed agreements with key players like Adyen, Braspag and ProCredit Ecuador, as well as others, who will now integrate Mastercard’s tokenization solutions to tokenize payment credentials on file with thousands of retailers across Brazil, Mexico, Puerto Rico and Ecuador. Issuer banks in more markets across the region are also preparing to launch this year.
Mastercard Digital Enablement Service – also known as “MDES” – is Mastercard’s tokenization solution that supports the new digital ecosystem we live in today. It is being adopted by banks, merchants, and payment service providers across Latin America as part of Mastercard’s Digital Security Roadmap, an initiative focused on improving the security and user experience of digital payments.
With token services, consumers can store their card credentials in their connected device, mobile wallet, or online merchant without the risk of exposing actual card account details, adding another layer of security to online transactions without removing the convenience. The technology protects the consumer’s card information by replacing the original 16-digit number on their card with a unique alternate number, or “token,” that is associated to that particular device, e-wallet or digital merchant and cannot be used anywhere else. In the event of a fraud attempt, the tokenized card data is completely useless for the cybercriminal. Tokenization also prevents service disruptions with a consumer’s favorite merchants by automatically updating card credentials should a card expire or need replacement.
“We’ve seen a fantastic response to MDES from both banks and merchants alike, and see these agreements as another positive development in the product’s continued adoption,” said Walter Pimenta, SVP of Digital Payments for Mastercard LAC. “With these digitized and tokenized card credentials available to us and our partners, we are designing rich, innovative, compelling and secure ways to pay across all channels and devices, redefining commerce globally,” he added.
“Braspag believes that security in the payment process benefits the entire purchasing chain, from cardholder to merchants to issuers and credit card brands”, explains Braspag President, Rogério Signorini. “Combining security, convenience and simplicity with innovation is our mission and this is another way to bring this to the e-commerce market. There are still many opportunities to leverage digital business in Brazil and around the world and Braspag will certainly continue to contribute to the growth of this sector”, he says.
"The partnership with Mastercard in providing tokenized transactions is yet another step for Adyen in promoting secure and seamless payment experiences,” says Jean Christian Mies, Adyen's President for Latin America. "The broad adoption of this product creates a safer ecommerce ecosystem, and Adyen will always be one step ahead in providing new technologies to our clients and partners,“ he added.
“ProCredit conceives security as one of the most valuable business and reputational assets. In that sense, every investment and effort to guarantee a secure and seamless digital services experience to our clients is a success for our institution and a certainty that we ensure security in each transaction,” says Gustavo Urquieta, Head of Security and Innovation Team Member of ProCredit Bank. “In the continuous search to provide the best digital experiences for our clients, the implementation of tokenized transactions is another milestone in our history as pioneers of cutting-edge technology in Ecuador and in the region, with the accompaniment of Mastercard.”