MasterCard (NYSE: MA) and Visa (NYSE: V) announced the formation of a new cross-industry group focused on enhancing payment system security in the wake of multiple security breaches.
The group will focus on a broad range of security-related topics, including advancing the migration to EMV in the United States, promoting additional security solutions like tokenization and point to point encryption to protect mobile and online transactions, and developing an actionable roadmap for securing the future across all segments of the payments industry.
"One of the critical roles we play is to protect consumers and businesses against criminals and fraudsters," said Chris McWilton, president of North American Markets, MasterCard. "Only through industry collaboration and cooperation will we address the real and immediate issue of security and maintain consumer confidence and trust. EMV will be the next step in these efforts, alongside enhanced security solutions for online and mobile channels."
This new group will include a diverse assembly of participants in the payments systems including banks of all sizes, credit unions, acquirers, retailers, point-of-sale device manufacturers and industry trade groups. The formation of the group is a public recognition of the importance for all parties to work together and will ensure all voices can contribute to the strategic direction of payment security.
"The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industries on the issue of payment security," said Ryan McInerney, president, Visa. "As we have long said, no one industry or technology can solve the issue of payment system fraud on its own. These conversations will serve as a useful forum to share ideas, break down barriers and spur the adoption of next generation security solutions for the benefit of all."
MasterCard and Visa expect the group will complement and engage with other efforts across the industry, including proprietary risk councils, EMV task forces and the standard management bodies.
It's just one of the many industry efforts stemming from Target's (NYSE: TGT) data breach in which more than 70 million accounts were compromised between November and December last year.
-See this press release
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