US Federal Reserve Report – Discussion on the Tokenization Landscape for Mobile Payments in USA
The Mobile Payments Industry Workgroup (MPIW) convened a meeting on June 2-3, 2014 to discuss several industry tokenization initiatives being developed for digital and mobile retail payments. The key objectives of the meeting were to: (1) generate an overview of the different industry tokenization initiatives under development (ASC X9, EMVCo, the Payment Card Industry Security Standards Council (PCI SSC), The Clearing House (TCH), and the credit card networks (Visa, MasterCard, and American Express (AmEx)); (2) begin to understand the business and operational perspectives of the tokenization schemes and implementation models; (3) lay the groundwork for conducting an analysis of the similarities and differences across these models; and (4) identify potential risks and gaps that may require industry coordination or input to standards. This paper provides an introduction to tokenization; summarizes the discussion on payment versus non-payment industry tokenization initiatives, and highlights some key differences, issues, and considerations underlying any tokenization models or technical specifications for the payments industry.
About the Mobile Payments Industry Workgroup (MPIW)
First convened in January 2010 by the Federal Reserve Banks of Boston and Atlanta through their Payment Strategies and Retail Payments Risk Forum groups, comprises a select set of key players in the mobile payments ecosystem in the United States. One initial goal of the MPIW was to facilitate discussions among the stakeholders as to how a successful mobile payments (as opposed to mobile banking) system could evolve in the U.S. The MPIW meets several times annually to share information and ideas, discuss barriers and opportunities in mobile payments, and ultimately, to suggest a vision for the building blocks of an effective, secure, and ubiquitous mobile payments environment in the United States.