BIRMINGHAM, Ala.—Two weeks following the introduction of Apple Pay, American Express announced that tokenization is coming soon to some of its cards.
In a release last week, American Express stated that it will replace credit card numbers with tokens, which can be used to complete transactions online, from a mobile app or in-store with a mobile near field communications-enabled device.
The card will have an embedded EMV chip that will generate a unique token for each transaction. Then, that token will be passed to a payment terminal via near field communications, much the same way that Apple Pay makes a transaction, explained Bill Hardekopf, CEO of LowCards.com.
Hardekopf also pointed out that MasterCard is already working on a fingerprint ID system in their cards. MasterCard is teaming with Zwipe in the development of a credit card that combines biometric authentication and contactless payment technology, a system similar to Apple's TouchID.
“If these two security features are incorporated into a credit card, then the argument that Apple Pay is somehow more secure than credit cards will be a moot point,” observed Hardekopf.
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