In an effort to curb the growth of card-not-present (CNP) fraud growth, American Express, Mastercard, and Visa have agreed in principle on a common UI for tokenized digital payments. The goal is to make the process of checking out as easy as possible, according to this article in Bankrate. What isn’t know is what happens to cards enrolled in current wallets, should this initiative roll out:
Don’t get too excited yet, as this is merely a call to action. There is a standards body for the payments industry called EMVCo. If that sounds vaguely familiar, it’s because chip cards are referred to as EMV cards. Last year, it proposed a framework that would standardize the way we pay for things digitally. Today, Mastercard and Visa said they would support this framework and want all other stakeholders in the payments world to get on board, too.
Visa announced it has created a program for merchants, banks and other players in the payments ecosystem intended to foster innovation. It believes the effort could simplify processes and decrease fraud.
American Express seems to be on board, too. A spokesman for the company said in an email that the company supports the exploration of a common user interface and that creating a consistent digital payment experience “is integral to the future growth of digital commerce.”
If three of the global networks are agreeing to a standard UI, then the problem must be acute and the competition for secure digital transactions brisk, but the aspiration is a good one.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group
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