American Express Introduces New Online and Mobile Payment Security Services

Nov 04, 2014

American Express announced the launch of its American Express Token Service, a suite of solutions designed to enable its card-issuing partners, processors, acquirers, and merchants to create a safer online and mobile payments environment for consumers.

With American Express Token Service, traditional card account numbers are replaced with unique "tokens," which can then be used to complete payment transactions online, in a mobile app, or in-store with a mobile Near Field Communication (NFC)-enabled device. By using tokens, merchants and digital wallet operators will no longer need to store consumers' payment account information in their systems. In addition, tokens can be assigned for use with a specific merchant, transaction type, or payment device to provide further protection against fraud.

American Express Token Service is available in the U.S., and international rollout is expected to begin in 2015. American Express also announced that it has developed network specifications for Host Card Emulation (HCE). American Express' HCE specifications provide its card-issuing partners with additional security options and solutions for payments made with mobile NFC-enabled devices that support Android OS KitKat. With HCE, card issuers use a secure cloud server to store their customers' card account details, which can be transmitted from the cloud server to an NFC-enabled mobile device and then to a Point-of-Sale terminal. American Express' HCE specifications are available globally.