MasterCard seeks to solidify their place as a premier token service provider as they recently formed partnerships with Synchrony Financial and Citi Retail Services to support tokenization for several private label payment cards. The card association also announced plans to expand token services for mobile and eCommerce merchants with recurring billing and card-on-file programs.
These issuer-based tokens are what are used with Apple Pay, Android Pay and Samsung Pay. The merchant never receives the actual payment card information, and neither does their processor. Rather they are provided with a token which the card association can connect to the card issuer for authorization, and as a result the merchant can receive an authorizations response and process the transaction without needing to possess or transmit the 16 digit Primary Account Number (PAN).