Adyen and JCB launch Card-on-File Tokenization to Enhance Payment Security

Adyen and JCB announced the rollout of JCB's card-on-file (COF) tokenization service, aimed at enhancing the security of credit card transactions for e-commerce merchants. Adyen is the first to offer and implement JCB’s new technology both domestically and globally. The introduction of COF tokenization will further enhance the security of online payments, providing JCB’s cardholders and merchants with even greater peace of mind and safety.

The rise of cashless payments and e-commerce transactions has led to an increase in credit card fraud in Japan, with over 90% of the total damage from such incidents tied to payment card data theft. In response, JCB has introduced its COF tokenization.

COF refers to payment details such as card numbers and expiration dates which are stored by merchants with cardholders' consent. JCB’s COF tokenization service replaces the JCB-branded COF data with an anonymized secure number (hereinafter “network token”). Sensitive card information is tokenized and not stored in the merchant's database, thereby reducing the risk of data breaches, and the network token is used to identify the customer for secure payment.

In addition to reducing the risk of data breaches, tokenization offers increased convenience to customers. The COF token mechanism ensures that the token is always associated with the latest card information. This eliminates the need for the customer to update their card information, facilitating a smooth payment process and improving the transaction authorization rates.

Tac Watanabe, Executive Officer and Head of Brand Infrastructure Headquarters at JCB, said: “E-commerce transactions are growing rapidly, and alongside this growth, fraudulent transactions due to card information breaches are also increasing. In response to this trend, it is important to reduce the risk associated with data breaches through COF tokenization and improve our customers' payment experience by keeping card information up to date. We are pleased to take the first step in this area through our collaboration with Adyen, a pioneer in the COF solution. Moving forward, we plan to actively implement COF tokens globally.”