This proposed enforcement action specifically targets “tokenization,” the technology that underlies mobile payment applications like Apple Pay, Google Pay, and Samsung Pay. When a debit or credit card purchase is made through a mobile wallet, the software substitutes sensitive information, such as the primary account number, with a set of single-use “tokens.” Mastercard and Visa claim that this practice prevents fraud because tokens do not contain any exploitable information while they are in transit. It is only when they reach Mastercard or Visa’s servers and are mapped back to their original account holders that they are linked to a specific person.
Image Source - Twitter
