Adyen and JCB Co., Ltd. have launched JCB’s card-on-file (COF) tokenisation service, designed to improve the security of credit card transactions for e-commerce merchants.

Adyen is purportedly the first to introduce and implement JCB’s new technology domestically and globally. COF tokenisation aims to improve the security of online payments, which could offer JCB cardholders and merchants greater peace of mind and protection.

For context, card-on-file or COF tokenisation refers to payment details, such as card numbers and expiration dates, which are stored by merchants with the cardholders’ consent.

The COF tokenisation service by JCB replaces JCB-branded COF data with an anonymised secure number, also referred to as a network token.

Sensitive card information is tokenised and not stored in the merchant’s database, which could reduce the risk of data breaches. The network token is used to identify the customer for secure payment.

In addition to reducing the risk of data breaches, tokenisation offers convenience to customers. The COF token mechanism ensures that the token is always associated with the latest card information.

This eliminates the need for customers to update their card information, ensuring a smooth payment process and improving transaction authorisation rates.

Tac Watanabe, Executive Officer and Head of Brand Infrastructure Headquarters at JCB, shared,

“E-commerce transactions are growing rapidly, and alongside this growth, fraudulent transactions due to card information breaches are also increasing. We are pleased to take the first step in this area through our collaboration with Adyen, a pioneer in the COF solution.”

Roelant Prins, Chief Commercial Officer at Adyen, added,

“We are delighted to announce our collaboration with JCB in launching their COF token services both in Japan and globally, further enhancing the security and convenience for JCB cardholders and keeping pace with the projected growth of the e-commerce industry.”

Adyen provides payments capabilities, insights, and financial products in a single solution to help businesses achieve their ambitions. It works Meta, Uber, H&M, eBay, and Microsoft, among others. Adyen’s cooperation with JCB underlines its expansion of supported payment methods.

Next, JCB is a leading credit card issuer and acquirer in Japan. Its acceptance network apparently includes about 56 million merchants worldwide. JCB Cards are now issued primarily in Asian countries and territories, with purportedly over 169 million cardholders.

As part of its international growth strategy, JCB has formed alliances with hundreds of banks and financial institutions globally to increase its merchant coverage and cardmember base.

Featured image: Edited by Fintech News Hong Kong, based on image by tete_escape via Freepik