Samsung and MasterCard have been working together for the last one year for Samsung Pay based on MDES (MasterCard Digital Enablement Service) platform, scheduled for a launch in the US and South Korea later this summer. Now they have announced to extend this partnership to roll out the same service for European area as well.
The service was earlier being run as a test model by Samsung, on its home turf in Korea.
With the continued global growth and reliance on connected mobile devices, we are delighted to expand our relationship with Samsung by extending the reach of Samsung Pay and MDES to cardholders in Europe.
said Javier Perez, President of MasterCard Europe.
MasterCard last year announced to provide its MDES tokenizing services to Samsung Pay for quick seamless transactions and connections it to banks in US. This will enable the users of Samsung flagship phones and other smartphones to associate their credit cards, debit cards and other business accounts with MDES platform and use Samsung Pay service upon its launch to pay for all their purchases made online.
The extended partnership will now see the same service in Europe as well where Samsung is right now in talks with banks and partners to bring the service in Europe.
Samsung Pay is pleased to join forces with MasterCard to offer a simple and safe mobile payment experience enabled for wider merchant acceptance to MasterCard cardholders and issuers in Europe.
said Injong Rhee, EVP of Samsung Electronics, Global Head of Samsung Pay.
Both organizations are committed to ground breaking fin-tech innovations that will deliver on the promise of a true mobile wallet.
MasterCard Digital Enablement Service (MDES) is a new tech introduced by MasterCard for ensuring secured transactions through digital wallet services. It is essentially a token-based service in which tokens are card numbers that mobile devices use in place of the card number printed on the plastic. MDES validates the transaction, maps from the token back to the PAN and forwards it to the issuer for authorization.
Since a token is locked to a specific device or channel, if the token is somehow compromised and a fraudster tries to use it, MDES will block the transaction thus ensuring an extra layer of security to transactions.
In the event of a lost device or when a plastic card is compromised, the link in MDES between the tokens and the card can be broken and token or the card is reissued without disrupting the consumer. Since the announcement of MDES in 2013, millions of MasterCard accounts have been tokenized for use in popular digital wallet services. MDES currently provides tokenization services for credit, debit, prepaid and small business cards.