J.C. Penney, Kohl’s To Accept Mobile Store-Branded Credit Card Payments

MasterCard has announced that it will provide tokenization services to private label (store branded) credit card issuers, enabling merchants to take advantage of the latest digital payment innovations including wireless card processing. Included among the first retailers to bring mobile payments to their private label cardholders later this year are Kohl’s, J.C. Penney and BJ’s Wholesale Club. 

The company is also partnering with private label credit card issuers to enable consumers to use their eligible credit cards within participating mobile payment and digital wallet services.

The goal, according to MasterCard, is to continue to enable consumers to pay when, where and how they want, and on the device of their choice.

MasterCard Digital Enablement Service (MDES) enables a connected device to be securely used for everyday shopping and payments, according to the company. It supports contactless payments with a mobile device at the physical point of sale, as well as from within a mobile app.

“Thanks to our ongoing innovation and strategic partnerships, we are helping shape the future of how private label credit cards work in whichever digital wallet customers choose,” said Margaret Keane, president and CEO of Synchrony Financial, a private-label credit card issuer. “It was recently announced that our retail partner, J.C. Penney, will be among the first to offer its private label credit cardholders the ability to checkout with Apple Pay later this year.”

MDES was initially announced in 2013, and millions of MasterCard accounts have been tokenized for use in popular digital wallet services,  according to MasterCard.

MDES was developed to ensure that any connected device can be used to make purchases, and deliver the simplicity, security and convenience people have become accustomed to when using a MasterCard account of their choice,” said Ed McLaughlin, chief emerging payments officer, MasterCard. “MasterCard is helping merchants capitalize on mobile payments, ensure the best possible consumer experience for their consumers and encourage both repeat business and customer loyalty.”