Merchants who use Adyen platform will soon benefit from even more secure credit card transactions with JCB Card-on-File (COF) Tokenization technology.
Adyen, a global fintech platform that provides end-to-end payment solutions for businesses, is the first company to roll out JCB’s card-on-file (COF) tokenization service, designed to boost the security of online payments and authorization rates.
COF (Card-on-File) refers to storing card details like card numbers and expiration dates by merchants and e-commerce platforms with the cardholder’s permission. It is used for both further one-time payments (one-click checkout) and subscriptions.
The solution replaces sensitive card-on-file information stored in an e-commerce app or via the merchant’s web portal with unique tokens. That enhances the security of stored credentials and streamlines recurring transactions. This way, the tool helps businesses minimize the risk of data breaches and unauthorized access when they aim to speed up the checkout process for customers. Additionally, JCB COF Tokenization ensures strict compliance with industry security standards, in particular with the Payment Card Industry Data Security Standard (PCI DSS).
Being an international payment brand based in Japan, JCB couldn’t help but notice an increase in credit card fraud in the country, with the vast majority (90%) of the incidents linked to payment card data theft triggered by increasingly sophisticated cybercriminal tactics. Globally, the situation is similar. The problem is especially acute in the U.S. market, which faced a 140% increase in credit card fraud over the past three years.
Therefore, the firm came up with a tokenization solution to address this issue and prevent it from hindering the rise of cashless payments and e-commerce transactions. Due to the creation of a secure, anonymous “network token” that substitutes the client’s sensitive information, JCB’s COF tokenization doesn’t require the actual card data storage in the merchant’s database, reducing the risk of payment data theft.
Besides security, the tool also offers increased convenience. As the token is always linked to the most up-to-date card information, customers don’t have to update their details manually. This ensures smooth transactions and higher authorization success rates.
Tac Watanabe, Executive Officer and Head of Brand Infrastructure Headquarters at JCB expressed satisfaction with the firm’s collaboration with Adyen, describing it as a first step towards global implementation of COF tokens.
Roelant Prins, Chief Commercial Officer at Adyen confirmed that Adyen is committed to extending the new tokenization technology across different payment platforms, including mobile payments.
Adyen operates in over 20 countries across Europe, Middle East, Africa, North America, Asia-Pacific (APAC) region and Latin America. It is headquartered in Amsterdam, with regional HQs in San Francisco, Singapore, and São Paulo. The fintech company also has local offices in 18 other global locations. Adyen constantly keeps expanding its reach. It has recently acquired licenses in India and Mexico, to process domestic and cross-border payments in these high-growth markets.
Adyen’s payment solutions are leveraged by over 145,000 business customers globally. They are serving enterprises in various industries, from hospitality to technology and retail. Therefore, JCB’s collaboration with this payment platform allows for broader adoption and integration of its tokenization service across various merchants and regions.
