Adyen First to Implement JCB’s COF Tokenization, Strengthening Security and Improving Payment Authorization Rates

Adyen First to Implement JCB’s COF Tokenization, Strengthening Security and Improving Payment Authorization Rates

(IN BRIEF) Adyen has teamed up with JCB to launch the card-on-file (COF) tokenization service, enhancing online payment security for e-commerce merchants. Adyen is the first to offer this service both in Japan and globally. The COF tokenization replaces sensitive card information with secure network tokens, reducing the risk of data breaches while ensuring seamless and convenient payments. The service is set to improve authorization rates and secure the future of e-commerce transactions.

(PRESS RELEASE) LONDON, 13-May-2025 — /EuropaWire/ — Adyen, the leading financial technology platform for top-tier companies, has partnered with JCB Co., Ltd. to launch JCB’s innovative card-on-file (COF) tokenization service. Adyen is the first to offer and implement this advanced technology, both in Japan and globally, to significantly enhance the security of credit card transactions for e-commerce merchants. With the introduction of COF tokenization, JCB cardholders and merchants will benefit from even higher levels of security and peace of mind in their online payment processes.

As cashless payments and e-commerce continue to grow, so does the risk of credit card fraud. In Japan, over 90% of the total damage caused by fraud is attributed to the theft of payment card data. To address this issue, JCB has introduced its COF tokenization service to further protect cardholders and merchants alike.

COF refers to payment details such as card numbers and expiration dates stored by merchants with the cardholder’s consent. JCB’s COF tokenization replaces the card’s sensitive data with an anonymized and secure number, known as a network token. This ensures that sensitive card information is not stored in the merchant’s database, mitigating the risks associated with data breaches, while still allowing for secure and smooth payment transactions.

Beyond enhanced security, tokenization also brings greater convenience to customers. The COF token mechanism ensures that the token is consistently linked to the most up-to-date card information. This eliminates the need for customers to manually update their card details, providing a seamless payment experience and boosting transaction authorization rates.

Tac Watanabe, Executive Officer and Head of Brand Infrastructure Headquarters at JCB, commented: “The growth of e-commerce is accompanied by an increase in fraudulent transactions due to card data breaches. To address this, it is crucial to reduce data breach risks with COF tokenization while ensuring an optimal customer experience. We are excited to take this first step with Adyen, a leader in COF solutions, and look forward to expanding the global implementation of COF tokens.”

Roelant Prins, Chief Commercial Officer at Adyen, added: “We are proud to collaborate with JCB in launching their COF token service, both in Japan and globally, as part of our efforts to enhance security and convenience for JCB cardholders. As e-commerce continues to grow, we are committed to making tokenization technology widely available across payment platforms, including mobile payments, to improve security and boost authorization rates.”

*Source: Japan Consumer Credit Association (JCA) https://www.j-credit.or.jp/information/statistics/download/toukei_03_g.pdf About Adyen Adyen (AMS: ADYEN) is the financial technology platform of choice for leading companies. By providing end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with the likes of Meta, Uber, H&M, eBay, and Microsoft. The cooperation with JCB Co., Ltd. as described in this update underlines Adyen’s continuous expansion of supported payment methods over the years.

About JCB JCB is a major global payment brand and a leading credit card issuer and acquirer in Japan. JCB launched its card business in Japan in 1961 and began expanding worldwide in 1981. Its acceptance network includes about 56 million merchants around the world. JCB Cards are now issued mainly in Asian countries and territories, with more than 169 million cardmembers. As part of its international growth strategy, JCB has formed alliances with hundreds of leading banks and financial institutions globally to increase its merchant coverage and cardmember base. As a comprehensive payment solution provider, JCB commits to providing responsive and high-quality service and products to all customers worldwide.  For more information, please visit: www.global.jcb/en/

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SOURCE: Adyen NV