Mastercard announces rise in online transactions with MDES for Merchants in Australia

Source: IBS Intelligence 2020-07-09

The Mastercard Digital Enablement Service (MDES) for Merchants, a tokenised payment security technology, has led to an increase of 316 per cent in the number of online transactions secured in Australia in the past three months by the company. The COVID-19 pandemic has accelerated the growth of online shopping and digital subscriptions in Australia. The increase can be explained with Mastercard’s recent research indicating that 65 per cent of online transactions now occur where the customer’s payment details are saved on file, thereby putting the onus on retailers to ensure confidential data is protected against potential theft or fraud.

MDES for Merchants ensures a customer’s payment data is safely stored and maintained by replacing card numbers with a unique and encrypted digital token.

“MDES for Merchants is a game changer for retailers, enabling a smoother and more secure shopping experience while future-proofing their business,” said Surin Fernando, Vice President of Business Development and Digital Product, Mastercard. “By replacing card details with a unique, encrypted and updatable token, retailers can rest easy knowing sensitive data is well protected, while consumers enjoy a convenient checkout experience every time, even if their card details have changed.”

The token can be updated by the card issuer, allowing lost, expired or replaced cards to be automatically updated with the merchant. This creates a better customer experience and significantly reduces the number of failed transactions due to expired card details.

“As technology has evolved, so have the ways we pay for goods and services. MDES for Merchants lays the foundation for the next wave of innovation, allowing more payments to take place anywhere and everywhere. As consumers begin to shop via their voice assistants, smart TVs, cars and other connected devices, now is the time for retailers to ensure their digital storefront is ready for these new ways to engage with their customers,” Fernando added.

Card issuers, banks and payment service providers in Australia, including Adyen, Datacom, Securepay, eWAY, EzyPay and Fat Zebra, are using MDES for Merchants. They are said to be benefiting from an improved dataset to better evaluate the legitimacy of transactions, thus resulting in a 7.5 per cent increase in approval rates and fewer declines. MDES for Merchants helps retailers to prepare for many new and innovative ways to pay, including IoT and voice commerce.

Mastercard

MDES

Mastercard announces rise in online transactions with MDES for Merchants in Australia

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