The convergence of physical and digital commerce is not in the future, it’s happening now. Connected devices such as the iPhone 6 and iPhone 6 Plus and wearables such as the Apple Watch are blurring those lines as they play an increasingly prominent role in all aspects of our daily lives. This shift of every device becoming a shopping device is the biggest change we’ve seen in payments since the introduction of plastic, and yesterday’s news is a defining moment in the industry’s evolution.
New solutions like Apple Pay embody the digital transformation taking place around the world and reinforce our commitment to delivering secure, digital payments. Together, with our partners, we’re moving important products and solutions like EMV and mobile payments out of neutral and driving them forward at full speed.
Given this changing landscape, over the past two years, we’ve focused on developing a secure platform to enable consumers to use their cards when, where and how they want. We’ve come up with a solution that supports the new digital ecosystem we live in today, called the MasterCard Digital Enablement Service – also known as “MDES”.
Here are five things you need to know about MDES and the technology we’ve pioneered to enable secure transactions:
1) What is MDES? MDES helps transform any connected device into a commerce device to make and receive payments. The MDES platform is helping power the new iPhone 6, iPhone 6 Plus and Apple Watch to enable secure payments to take place for contactless and in-app payments.
2) How it works: All MasterCard transactions made through Apple Pay are ready to use industry-standard EMV-level security, and are protected using standards-based payment tokens. Tokens are card numbers that mobile devices use in place of the card number printed on the plastic. MDES validates the transaction, maps from the token back to the PAN and forwards it to the issuer for authorization.
3) Why do we use tokens? Using tokens enable us to deliver a more secure and a better payment experience. The extra layer of security comes from the fact that we can lock a token to a specific device or channel. If the token is somehow compromised and a fraudster tries to use it MDES will block the transaction. The better customer experience comes from the fact that in the event a device is lost or a plastic card is compromised – we can break the link in MDES between the tokens and the card – and reissue the token or the card – without disrupting the consumer. It’s truly powerful when you can use advanced technology to deliver more security and remove consumer pain points.
4) What kind of transactions does MDES support? MDES supports contactless payments and Digital Secure Remote Payments (DSRP). DSRP is a transaction method where a consumer is able to make in-app purchases using a token. Contactless payments leverage NFC technology for point-of-sale transactions, while DSRP delivers EMV-like transaction for in-app payments.
5) What’s next for MDES? MDES makes it easy for our issuing partners to enable their MasterCard accounts on devices that consumers want to use to pay on the go. While MDES launched in the U.S. in 2014, it will expand more broadly to other major markets during the course of 2015, and will be extended to support MasterCard Cloud Based Payments which we announced earlier this year.
Yesterday was a great milestone for delivering digital payments – but the journey continues – keep posted for more developments.
16 Comments
How does one go about connecting with an account specialist to discuss acquiring this technology for other phones (i.e., Androids, etc..), as it pertains to supporting a business that want’s to direct it’s customers to leveraging this emerging technology to purchase goods during a live feed show?
Thank you for reaching out! In addition to our work with Apple, we are working with several other service providers to deliver simple and secure mobile & digital payments to consumers via our MDES platform. Apple Pay is coming out shortly, and we’ll be announcing future service capabilities as they come to market.
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Payment devices may come in different exciting form-factors, but Authentication will continue to be one of the biggest challenges. “Who are you?” will be the first question to be answered by everyone before they initiate any payment transaction. Multi-Factor Authentication starts with “what you have”, “what you know” and “what you are”. An intelligent, adaptive, step-up, random combination of authentication factors based on context, location, profile, amount of transaction would yield a myriad combination of products and services. Welcome to AaaS – Authentication as a Service
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Samsung pay does not allow me to use my Mastercard I really use more master card for everything now have a new Samsung phone with a new Samsung pay and I can’t use it
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My mobile payments are also tied to Mastercard, which is really convenient!
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Digital payment is a common phenomenon in this modern era, most smartphone users shop online via their mobile devices, some people say the mobile device is considered as a shopping device rather than only a communication way! During an online transaction, some appropriate precautions should be taken as a safety measure! There are many unwanted incidents happening in the time to doing transactions. For that reason, many phone companies for example Apple provide services for their consumers with digital payment through their app on their device! MDES platform enables people to make payments and receive payments on their mobile devices. Most of the people have been performing online transactions on their electronic devices without any unwanted incident with the help of MDES support! Apple’s authority did an excellent job in this regard and they always try to add the latest and advanced technology to help their consumers. And it is the most important thing they have been always focusing on their existing services and for that reason, Apple has achieved a peak position in this competitive market place. Thanks for letting us know about this digital transaction payment system and the pros and cons of the whole procedure. It will help me with doing payment in online!
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