MasterCard and Visa recently formed a new alliance to enhance payment system security to keep pace with the times and meet expectations of consumers, retailers and financial institutions.
The firms say the alliance’s first priority will be the adoption of EMV chip technology in the US, security-related issues such as tokenization, point-to-point encryption and other US-specific needs.
In a statement, Chris McWilton, president of North American Markets, MasterCard said,“One of the critical roles we play is to protect consumers and businesses against criminals and fraudsters. Only through industry collaboration and cooperation will we address the real and immediate issue of security and maintain consumer confidence and trust. EMV will be the next step in these efforts, alongside enhanced security solutions for online and mobile channels.”
The new alliance will liase with banks, credit unions, financial acquirers, retailers, point-of-sale device manufacturers and industry trade groups to work towards card payment security. The two expect the alliance to complement and engage with other efforts across the industry, including proprietary risk councils, EMV task forces and the standard management bodies.
“The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security,” said Ryan McInerney, president, Visa Inc. “As we have long said, no one industry or technology can solve the issue of payment system fraud on its own. These conversations will serve as a useful forum to share ideas, break down barriers and spur the adoption of next generation security solutions for the benefit of all.”
MasterCard recently launched in seven African markets to make payments easier while Visa has been working with several banks to push its payment cards adoption. This new alliance will also trickle down to MasterCard and Visa users in Africa.