Mastercard, Google Pay to roll out tokenisation for card-based payments

Mastercard and Google Pay have tied up to offer tokenised card services that will enable Google Pay users to safely transact money using Mastercard credit and debit cards.

Tokenisation will allow Mastercard cardholders to make payments through a secure digital token attached to their phone without sharing their card details like number and expiry date with a merchant.

The collaboration will also facilitate Google Pay customers to use tap-to-pay feature at point-of-sale terminals and online merchants and make in-app transactions through their Mastercard debit and credit card.

Users will have to register for the service by entering their card details and OTP and adding their card on the Google Pay app, a statement said.

At present, banks like Axis Bank, Federal Bank, HDFC Bank, HSBC, RBL Bank and SBI offer card services using Mastercard.

“We are excited to collaborate with Mastercard for card tokenisation which will offer users state-of-the-art security for card payments,” Sajith Sivanandan, business head of Google Pay, said in the statement. The service is already live on several credit cards and Google is collaborating with other banks to expand the adoption of tokenisation in India, he said.

In this system, payment credentials are tokenised and stored in mobile devices using the Mastercard Digital Enablement Service. This way, details of the user’s debit or credit card remains safe even if the cardholder misplaces the mobile phone. The token can be easily updated with the merchant, allowing users to replace lost and expired cards. The process also reduces the number of failed transactions on account of expired card details.

In June this year, Google Pay had partnered with leading Indian banks, including SBI, to offer tokenised card services on its Unified Payments Interface (UPI) app. The company offers tokenised services to debit card holders of SBI, IndusInd Bank and Federal Bank and credit cards holders of IndusInd Bank and HSBC India. Back then, Visa was the network partner for these transactions.