Mastercard has rolled out an innovative new service for banks in India called MDES Token Connect that makes online transactions way more secure.Here we break down what it is and why it matters.

What is Tokenization & Why Do We Need It?

When you shop online, merchants need to store your card info to charge you. This means your actual card number is floating around networks and databases.

Tokenization swaps cards for digital “tokens” which are alternate codes that represent your card. So no sensitive card data lands in merchant’s hands. Much safer for customers who are worried about data frauds.

Until now though, token creation happened only through merchant apps/sites. Now, Mastercard's new platform lets banks handle it directly which gives more control to cardholders.

Introducing MDES Token Connect: Empowering Banks & Customers

MDES Token Connect works like a bridge between banks and online shopping zones. It equips banks to tokenize debit/credit cards across their mobile/net banking apps seamlessly.

This means users can now tokenize cards directly via their bank's channels instead of merchants. That enhances privacy settings to a great extent.

For banks, a single integration with MDES lets them activate tokenization across platforms in one go. This discards tedious merchant-by-merchant APIs. More tokens generated = more secure digital finance ecosystem.

Why RBI's Rules Supported This Move?

The Reserve Bank of India (RBI) had said that tokenizing via banking channels will enhance security which opened doors for Mastercard to launch this solution.

With over 560 million already tokenized under RBI guidelines, MDES Token Connect comes at the perfect time, and it can rocket existing efforts to new heights.

Benefits for Customers

• Super-safe online shopping + bill payments as real card data stays hidden
• No more manually punching card details when checking out
• Control over which merchant can store tokens

Benefits for Banks

• Savings by integrating via one platform
• Gain insights on spending patterns from token usage data
• Support Mastercard, Visa, and RuPay tokens in one sweep

Summing Up

Mastercard's latest innovation - MDES Token Connect puts power in the hands of banks to transform digital finance safety. Tokenizing via banking means users can shop confidently online as the actual card details stay far away from vulnerable databases.