E-Financial
MasterCard Introduces Authentication Security Measures for Online Checkout
Mastercard has introduced a digital commerce solutions suite that enhances the security of stored card credentials, advances authentication to reduce checkout errors, and speeds the online checkout experience, according to a press release.
The company will enable token services on all cards by 2020 to make online transactions simple, seamless and secure.
With token services, consumers can store their card credentials with a merchant or retailer without the risk of exposing actual card account details, adding another layer of security to online transactions without removing the convenience.
It also prevents service disruptions with a consumer’s favorite merchants by automatically updating card credentials should a card expire or need replacement, the release said.
Together with banks, merchants and payment service providers, Mastercard is bringing EMV-like security to digital environments.
The company is working with Adyen, BlueSnap, Digital River, Stripe, Square, Worldpay and Mastercard Payment Gateway Services to extend tokens to thousands of retailers.
According to the release, it is also working directly with issuers such as Citi and Fifth Third Bank to convert cards on file into tokens, and with Bank of America to provide enhanced fraud scoring to help increase approval rates over time.
Mastercard is also leveraging technology such as biometrics and artificial intelligence to enable merchants and issuers to verify a consumer is who they say they are, thereby reducing falsely declined transactions and delivering a better consumer experience, the company said.
Mastercard Identity Check provides merchants and issuers an easy way to support the new EMV 3-D secure standard and leverage enhanced security solutions to determine potential risks and ensure more transactions can be completed with a single touch or click.
The company has worked with issuers and merchants in the U.S. and Europe to enable the technology, and has partnered with merchants and issuers across the globe to begin rolling out the technology in early 2019, the release said.
The company will begin to roll out its solution based on SRC in the second half of 2019. Its Masterpass acceptance network supports this rollout, delivering a consistent checkout experience for consumers and reducing the multiple steps they face at different sites today.
SRC will also make it easier for merchants to implement and securely store tokens on file and improve their approval rates. This supports a move toward a token-only world by building on the tokenization standards. Masterpass acceptance is compatible with SRC.
Mastercard is also working to ensure consumers are made aware which card they have set with card on file merchants with the introduction of new digital branding requirements.
The requirements ensure a consumer is aware they are paying with a Mastercard credential during the checkout process whether it’s in-app, via browser, contactless, voice-enabled devices or a QR application.
“Adyen was the first to launch Automatic Billing Updater Direct with Mastercard and we are thrilled to now add tokenization capabilities.
“We see these integrations as important steps to ensure a seamless digital commerce experience for consumers backed by best in class security and transparency,” Kamran Zaki, president of Ayden North America,, said in the press release.
The Central Bank of Nigeria (CBN) has slammed a ₦250 million fine on Paystack for operating Zap, its peer-to-peer payment app, as a wallet in breach of its regulatory approval.
The apex bank flagged Zap as a deposit-taking product, a function reserved exclusively for institutions with microfinance or banking licences, according to a report by TechCabal.
Launched in March, Zap allows users to send and receive money, positioning itself as a consumer-facing digital wallet.
However, Paystack only holds a switching and processing licence, which permits it to facilitate transactions but not to hold customer funds. This regulatory limitation is at the heart of the CBN’s sanction, sources familiar with the matter said.
“Paystack is working closely with the regulator as they further review Zap, and out of respect for the process, we won’t be making any public comments at this time,” a company spokesperson said.
The penalty comes amid a legal dispute between Paystack and Zap Africa, a Nigerian crypto startup, which has accused the fintech of trademark infringement.
In Nigeria’s highly regulated financial services space, digital wallets are considered deposit-taking entities, and offering such services without the requisite licence raises compliance concerns for the regulator.
Although Zap reportedly does not directly hold customer funds, it operates in partnership with Titan Trust Bank, which is authorised to accept deposits.
This is Paystack’s most significant publicly disclosed regulatory sanction since it received CBN approval in 2016. It reveals the growing scrutiny facing fintech firms as they transition from enterprise-focused offerings to consumer-facing financial services.
Guaranty Trust Bank (GTBank) has announced an increase in its SMS transaction alert fee from ₦4 to ₦6 per message, effective May 1, 2025. The bank cited a recent rise in telecommunication tariffs by service providers as the reason for the adjustment.
In a message to customers, GTBank explained that SMS alerts sent to international phone numbers would attract higher charges due to varying telecom costs. The bank emphasized the importance of transaction alerts in helping customers monitor account activity
Customers who no longer wish to receive SMS alerts have the option to update their alert preferences by submitting a form available on the bank’s website via email. This move allows customers to manage their notification preferences according to their needs.
The fee increase affects GTBank customers, who will now be charged ₦6 per SMS alert for transactions
Union Bank of Nigeria Plc is facing a major financial scandal after hackers reportedly siphoned N9.3 billion from multiple customer accounts.
The breach, which occurred on March 23, 2025, has led to an urgent legal battle as the bank seeks to freeze accounts suspected of receiving the stolen funds.
Court filings reveal that the cybercriminals exploited a critical system glitch, discreetly transferring the money in small amounts across 54 financial institutions to evade detection.
Oluwasegun Falola, Union Bank’s Head of E-Fraud Investigations, confirmed that tracking the transactions has been challenging due to their fragmented nature.
Acting swiftly, the bank filed a lawsuit (FHC/L/CS/629/2025) at the Federal High Court in Lagos, requesting an emergency order to halt further withdrawals. On April 2, 2025, the bank’s legal team, led by A. Adedoyin-Adeniyi, informed the court that the stolen funds were still being actively moved—suggesting an ongoing laundering operation.
In response, Justice Deinde Dipeolu granted a Post No Debit (PND) order, freezing all implicated accounts pending further investigation.
This crisis comes just 15 months after the Central Bank of Nigeria (CBN) dissolved Union Bank’s former board over governance failures. Under the leadership of MD Yetunde Oni, the bank now faces intense scrutiny as customers demand accountability.
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