Mastercard launches tokenisation service for banks in India

The RBI's restrictions were put in place because Mastercard failed to comply with India's local data storage norms. (Representative Image: REUTERS/Eduard Korniyenko)

Global payments and technology company Mastercard on February 12 launched Mastercard Digital Enablement Service (MDES) Token Connect, a platform that supports issuer-initiated tokenisation for banks in India.

Under MDES, banks can enable card-on-file and device tokens for debit and credit cards through their mobile and internet banking channels.

"MDES Token Connect aims to provide a convenient and secure way for cardholders to transact online," the company said in a press release.

In other words, issuer banks can easily integrate their mobile and internet banking platforms with MDES Token Connect, thereby allowing cardholders to securely transmit payment details to token requestors, including online merchants, digital wallets, and e-commerce platforms.