The Clearing House (TCH) has partnered with Mastercard to provide and manage Mastercard-branded tokens on behalf of banks.
The partnership will allow Mastercard to establish TCH as its certified third-party token service providers to enter the US market.
It will also enable TCH to support current and future token capabilities, including mobile payments to remote purchases and Internet-of-things transactions.
TCH intends to launch card tokenisation solution in the next quarter and will extend tokenisation to other networks, including Real-Time Payments.
TCH product development and strategy executive vice president Dave Fortney said: “The safety and security of payments is paramount to TCH and our owner banks, and was a core rationale for our initial token work stemming back several years.
“We are excited to partner with Mastercard to provide issuer optionality and functionality for token services.”
Mastercard digital partnerships executive vice president Sherri Haymond said: “In the digital age, where all connected devices are becoming commerce devices, we must make security a core focus.
“Through this partnership, banks that issue Mastercard-branded cards now have the choice to tokenise their customers’ accounts through TCH, providing their customers digital payments options that offer the same safety, security, rights and benefits as accounts tokenised by Mastercard.”