Mastercard, in partnership with PrivatBank and LiqPay service, have launched MDES for Merchants servicein Ukraine that enables storing tokens instead of card details in e-commerce thus enhancing security level of online transactions and improving consumer experience. The first to integrate the platform were MEGOGO.NET, OLL.TV, AUTOLUX and Privat24.
Mastercard, in partnership with PrivatBank and LiqPay payment service, have launched the Mastercard Digital Enablement Service for Merchants, which is a part of Mastercard digital platform (MDES) that works with global digital wallets (Apple Pay, Google Pay, Garmin Pay etc.). The new tokenization for merchants service replaces card details with tokens and enables online merchants to considerably increase the rate of completed payments due to high level of trust to such transactions on the part of issuing banks.
Users will not have to enter physical card details on every payment anymore. Besides, this solution makes an online bank card to a card with no expiration date because, if digitalized, a card remains valid even when its physical analogue has expired and needs to be re-issued. New card details will be synchronized with the token. All this makes online settlements easier and quicker while improving user experience.
LiqPay ensures the new tokenization platform operation with online merchants that have joined. During the card digitalization in an online shop, a bank card is assigned a unique number (token), just like in mobile wallets. Tokenization is ensured through the Mastercard digital platform, MDES.
The increased security level of tokenized transactions is ensured by a unique cryptogram for each transaction. Furthermore, on card digitalization in various online shops, every online merchant receives individual tokens for every card. Such a high level of security meets the EMV international standard requirements.
Tokenization of cards, which are already stored in the user account on the merchant side, is made via LiqPay. If the card is added to the user profile for the first time, a token is generated on the first transaction. Tokenization is made upon user consent. A card issued by any Ukrainian bank can be tokenized by merchant through Mastercard’s platform.
«Whether consumer selects a card, a telephone or any other device as his payment method, we are focused on making the digital payment process convenient, quick and as secured as possible, just like in the physical world”, says Yuriy Batkhin, Head of Market and Business Development, Mastercard Ukraine. “For now, the rate of successful online transactions in Ukraine is 80%, so 1 in 5 online transactions is not completed. At the same time, the rate of e-commerce growth is at least twice as high as that of traditional retail. Based on the own data we have seen an increase in approval rates globally of up to 6% on MDES for Merchants transactions compared to overall ecommerce transactions. The launch of merchant tokenization in Ukraine will give users extra confidence in transaction security, convenience through prolongation of card validity term, and will stimulate the development of Ukrainian e-commerce”.
Today, MDES for Merchants is already available on the online TV and movie resource MEGOGO.NET, internet TV resource OLL.TV, bus ticket selling online service AUTOLUX and mobile banking app Privat24.
“Tokenization of online acquiring is a benchmark happening for the market, a revolution that will become an impetus for the development of e-commerce in Ukraine, digitalization of offline services”, says Serhii Kharitych, Member of the Board, PrivatBank. “Implementation of this solution in partnership with Mastercard will enable our e-commerce clients to provide the most sophisticated new level of security to bank card users while ensuring maximum payment processing speed and convenience”.
The introduction of MDES for Merchants unlocks new business development opportunities for online merchants. This payment method eliminates consumer barriers in terms of payment security. According to Mastercard, 80% of the Europeans have doubts aboutthe security of card details storage and transfer. Increased security offered by the new platform enables online shoppers to gain new experience, check out the security of transactions and complete them, and thus is intended to become one of the drivers for the e-commerce market.