Adyen is the first to offer JCB’s advanced tokenization, which aims to combat credit card fraud and boost authorization rates.
Adyen, the financial technology platform of choice for leading companies, and JCB Co., Ltd., announced the rollout of JCB’s card-on-file (COF) tokenization service (hereinafter “COF tokenization”), aimed at enhancing the security of credit card transactions for e-commerce merchants. Adyen is the first to offer and implement JCB’s new technology both domestically and globally. The introduction of COF tokenization will further enhance the security of online payments, providing JCB’s cardholders and merchants with even greater peace of mind and safety.
The rise of cashless payments and e-commerce transactions has led to an increase in credit card fraud in Japan, with over 90%* of the total damage from such incidents tied to payment card data theft. In response, JCB has introduced its COF tokenization.
COF refers to payment details such as card numbers and expiration dates which are stored by merchants with cardholders’ consent. JCB’s COF tokenization service replaces the JCB-branded COF data with an anonymized secure number (hereinafter “network token”). Sensitive card information is tokenized and not stored in the merchant’s database, thereby reducing the risk of data breaches, and the network token is used to identify the customer for secure payment.
In addition to reducing the risk of data breaches, tokenization offers increased convenience to customers. The COF token mechanism ensures that the token is always associated with the latest card information. This eliminates the need for the customer to update their card information, facilitating a smooth payment process and improving the transaction authorization rates.
Tac Watanabe, Executive Officer and Head of Brand Infrastructure Headquarters at JCB, said: “E-commerce transactions are growing rapidly, and alongside this growth, fraudulent transactions due to card information breaches are also increasing. In response to this trend, it is important to reduce the risk associated with data breaches through COF tokenization and improve our customers’ payment experience by keeping card information up to date. We are pleased to take the first step in this area through our collaboration with Adyen, a pioneer in the COF solution. Moving forward, we plan to actively implement COF tokens globally.”
Roelant Prins, Chief Commercial Officer at Adyen, said: “We are delighted to announce our collaboration with JCB in launching their COF token services both in Japan and globally, further enhancing the security and convenience for JCB cardholders and keeping pace with the projected growth of the e-commerce industry. We are committed to making tokenization technology available across various payment platforms, including mobile payments, to significantly enhance security for customers and increase authorization rates.”
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
