Mastercard introduces Tokenization technology in MENA to enhances security capabilities

As e-commerce continues to accelerate owing to the COVID-19 pandemic, Mastercard has introduced Tokenization technology in MENA to counter cybersecurity and combatting fraud.

As part of Mastercard’s commitment to support the financial data and security of consumers and merchants alike, it introduced MDES for Merchants (M4M) offering across the region. The new service uses Tokenization technology to speed up and simplify the purchase process online and in-app, as well as for subscription-based and recurring payments like streaming music, video services and utility bills.

The new tokenization technology is also designed to protect security of consumers and merchants as shopping goes increasingly digital.

“As online shopping gains a stronger foothold in the region, it is integral that businesses ensure the trust of consumers and protect their financial data. At Mastercard, we continue to work with merchants across MENA to introduce new solutions that ensures frictionless shopping experience with no compromise on security by enabling technologies like tokenization and leveraging our payment gateway capabilities with MPGS to bring them into market. E-commerce continues to be a driving force in economic recovery, and we are working closely with our partners to foster innovation and trust in this sector,” Magdy Hassan, Country Manager, Egypt & Pakistan, Mastercard.

Currently, Mastercard has partnered with Checkout.com, a leading global payment service provider and FOO, a technology company focusing on fintech solutions, to roll out this technology in the region.

“Checkout.com has been working with Mastercard to introduce innovative features and products that enable our merchants to seamlessly accept payments and unlock more value from every transaction", said Sebastian Reis, EVP Global e-commerce at Checkout.com. "We've seen an acceleration in the shift from offline to online commerce in MENA driven by the pandemic. As such, the ecosystem requires constant innovation such as tokenization, to ensure that consumers and merchants are protected in an increasingly digital world."

Tokenization encrypts consumer data by replacing card numbers with digital tokens. Every time a transaction is made online or with a mobile wallet, a unique token is created to make the payment and ensures that a consumer’s 16-digit card number is not stored anywhere. This prevents improper usage at any other location and provides additional security and peace of mind for consumers and merchants alike, resulting in higher approval rates while minimizing online fraud.