NFC TIMES Exclusive Insight – As more consumers buy online, and to a lesser extent use mobile wallets for in-store purchases, because of the coronavirus pandemic, tokenized card transactions are expected to increase dramatically.
Tokenization technology will get a major boost from the decision by Amazon to tokenize cards on file in 12 countries in North America, Latin America, Middle East and Europe this year, Mastercard said in an announcement Wednesday. Visa earlier said that it had signed up Amazon and such other large e-commerce or recurring-billing merchants as Netflix to tokenize Visa-branded cards on file.
Tokenization is being strongly pushed by such major payments networks as Visa and Mastercard, which ensures the networks remain a vital part of the transactions. And the great majority of tokenized transactions today are for e-commerce purchases, using cards stored on file with online merchants.