Mastercard Streamlines Tokenization for Indian Banks with MDES Token Connect

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Mastercard Streamlines Tokenization for Indian Banks with MDES Token Connect
13 Feb 2024
4 min read

News Synopsis

Mastercard, a leading global payments and technology company, has introduced the Mastercard Digital Enablement Service (MDES) Token Connect platform on February 12. This innovative platform is designed to facilitate issuer-initiated tokenisation for banks in India, offering enhanced security and convenience for online transactions.

Mastercard's MDES Token Connect Platform:

The MDES Token Connect platform is a significant advancement, enabling banks to implement card-on-file (CoF) and device-based tokenisation through their mobile and internet banking channels. This initiative aligns with Mastercard's commitment to providing a secure and streamlined online transaction experience for cardholders.

Key Features of MDES Token Connect:

Mastercard emphasizes that MDES Token Connect serves as a unified solution, allowing issuer banks to integrate seamlessly with their mobile and internet banking platforms. This integration empowers cardholders to transmit payment details securely to various token requestors, including digital wallets, online merchants, and e-commerce platforms.

Advantages for Issuer Banks:

Issuer banks can leverage the MDES Token Connect platform to streamline processes related to tokenisation. This single integration point eliminates the need for multiple proprietary APIs, offering issuer banks a more efficient and simplified approach to managing card tokens across various token requestors.

Regulatory Context:

This development comes on the heels of the Reserve Bank of India (RBI) expanding the scope of card tokenisation for both debit and credit cards. The inclusion of channels such as internet and mobile banking has opened up new avenues for secure and convenient transactions.

Mastercard's Vision for MDES Token Connect:

Mastercard's press release highlights that MDES Token Connect is designed to enhance the online transaction experience for cardholders, emphasizing both convenience and security. The platform's issuer-initiated tokenisation capabilities contribute to a robust and secure digital payments ecosystem.

How Does MDES Token Connect Work?

  1. Bank Integration: Banks integrate their mobile and internet banking platforms with MDES Token Connect.

  2. Cardholder Choice: Cardholders can opt to tokenize their cards through their bank's mobile or internet banking app.

  3. Secure Transmission: Upon selecting a merchant, the tokenized card details are securely transmitted to the merchant, safeguarding sensitive information.

Why is This Important?

MDES Token Connect addresses key challenges in the Indian digital payments landscape:

  • Fragmented Tokenization: Previously, banks relied on individual APIs for each token requestor, making the process complex.

  • Limited Scope: Tokenization was initially restricted to specific channels, hindering wider adoption.

  • Security Concerns: Manually entering card details can expose users to fraud.

By offering a unified platform and supporting expanded tokenization, Mastercard facilitates a more seamless, secure, and efficient online payment experience for both banks and their customers.


As Mastercard continues to innovate in the digital payments landscape, the launch of MDES Token Connect signifies a strategic move towards strengthening the security infrastructure for online transactions in India. Issuer banks embracing this platform are poised to offer their customers a more seamless and secure digital payment experience.

TWN Special