Adyen joins JCB around Card-On-File

New example of the renewal of the "Card-On-File" model, the financial technology platform Adyen has officially signed its new partnership with JCB, company specializing in contactless payment solutions. The two partners are now working on the deployment of a tokenization solution for recorded cards, Card-On-File.

FACTS

• The "Card-On-File" model is based on the automation of the secure update of card data. This model will now also be proposed by Adyen and JCB to combat card fraud and optimize acceptance rates.

• The two partners have just announced the deployment of their new credit card tokenization service to enhance the security of credit card transactions for e-mergers. In particular, Adyen is now the first company to propose and deploy JCB's new technology on the subject.

• The latter provides for the use of payment information (card numbers and expiry dates) stored by traders with the consent of the holder. It replaces sensitive card data with secure and anonymous numbers. The sensitive information on the card is thus tokenized and is not stored in the merchant's database.

• The deployment of this solution is planned internationally and will be addressed to JCB cardholders as well as traders affiliated with its network.

ISSUES

• Enhancing the security and simplicity of payments: This new partnership is primarily justified by the ambition of both actors to strengthen payment security. But this system also allows customers to no longer need to update their card information, which facilitates the payment process and improves transaction clearance rates.

• Countering a Growing Threat : As a Japanese actor, JCB relies on market data to justify the launch of its Card-On-File solution. According to the Japan Consumer Credit Association (JCA), the rise in electronic payments and e-commerce transactions has led to an increase in credit card fraud in Japan. And more than 90% of the losses caused by these incidents are related to card data theft.

PERSPECTIVE

• Adyen is not at its first initiative in the "Card-On-File" market. In France, for example, Adyen was partnering with GIE CB in March 2023 to launch MDC (Updating CB Card data), a solution designed to optimize Deezer's customer experience, and to support e-commerce growth more widely.

• The Grouping of CB Banking Cards has also just re-launched in the battle between the schemas on the theme by proposing a "card-on-file" (CoF) solution based on an automatic data update brick via its solution Updata by CB. The latter will be addressed on the BtoB market, to traders and buyers through a new partnership signed with Lyra.

Traduit automatiquement via Libretranslate / Automatically translated via Libretranslate