Adyen Partners with JCB to Launch Advanced Card-on-File Tokenization, Setting a New Global Standard for Secure Online Payments

Adyen, the preferred financial technology platform for the world’s leading businesses, has partnered with JCB Co., Ltd. to launch JCB’s cutting-edge card-on-file (COF) tokenization service. This innovation is designed to significantly boost the security of online credit card transactions for e-commerce merchants.

As the first payments platform to implement JCB’s COF tokenization both in Japan and worldwide, Adyen continues to lead in delivering secure, seamless payment experiences. This Adyen-JCB partnership rollout marks a major step forward in protecting sensitive payment data, offering JCB cardholders and merchants enhanced safety, reduced fraud risk, and greater peace of mind in every transaction.

Key Takeaways

• Adyen is the first global platform to implement JCB’s COF tokenization, replacing sensitive card data with secure network tokens. This significantly lowers the risk of data breaches for merchants and protects cardholder information.
• The tokenization system keeps customer card details current, removing the need for manual updates and helping merchants maintain higher authorization rates by reducing transaction failures due to outdated card data.
• With over 90% of credit card fraud in Japan tied to stolen payment data, the rollout of JCB’s COF tokenization aims to reduce fraud risks and increase trust in e-commerce transactions.
• The collaboration between Adyen and JCB is positioned for worldwide rollout, reflecting broader trends in digital payment security. Data from Visa supports the value of tokenization, with measurable reductions in fraud and increases in approval rates.

Adyen-JCB Partnership to Launch Global Card-on-File Tokenization for Safer Online Payments

Adyen, a global financial technology platform, has teamed up with JCB Co., Ltd., Japan’s leading credit card issuer and acquirer, to launch JCB’s Card-on-File (COF) tokenization service. With this move, Adyen becomes the first company to offer and support JCB’s tokenization technology both in Japan and internationally. The service is designed to improve the security of credit card payments for online merchants by replacing stored card details with secure tokens.

COF tokenization is a security method that replaces stored payment details—like card numbers and expiration dates—with a unique, secure number called a “network token.” This token is created with the cardholder’s permission and is used instead of the actual card information when making payments.

Because merchants don’t store the real card details, the risk of data breaches is much lower. The network token is always linked to the most up-to-date card information, which means customers don’t have to manually update their details when a card expires or is replaced. This helps reduce payment failures, makes the checkout process faster, and improves the chances of a transaction being approved.

As cashless payments and online shopping have become more common in Japan, credit card fraud has also increased. More than 90% of the total financial losses from these incidents are linked to stolen payment card data. To address this problem, JCB has introduced its COF tokenization service. The goal is to strengthen the security of online payments and help protect both JCB cardholders and merchants from fraud.

Tac Watanabe, Executive Officer and Head of Brand Infrastructure Headquarters at JCB, highlighted the critical importance of this initiative amid the rapid rise in e-commerce. As online transactions surge, so too does the threat of fraud stemming from compromised card data. To counter this, JCB is committed to reducing breach-related risks through COF tokenization, ensuring customer card details remain secure and up to date while enhancing the overall payment experience.

Watanabe expressed enthusiasm about launching this effort in partnership with Adyen, a global leader in COF solutions. He affirmed that this collaboration marks a significant first step, with plans underway to expand COF token adoption on a global scale.

Roelant Prins, Chief Commercial Officer at Adyen, echoed the enthusiasm surrounding the partnership, expressing pride in collaborating with JCB to launch their COF tokenization services both in Japan and internationally. This joint initiative marks a significant step forward in strengthening security and improving convenience for JCB cardholders, aligning with the accelerating growth of the global e-commerce market.

Prins highlighted Adyen’s focus on making tokenization technology available across more payment methods, including mobile. The goal is to improve data security for consumers while helping merchants see better transaction approval rates.

The rollout of COF tokenization is expected to make a noticeable difference in how payments are handled:

• Stronger Security: Sensitive card information is replaced with secure tokens, lowering the risk of data breaches.
• Simpler Checkout for Customers: Since tokens stay linked to the most current card details, customers don’t have to update their payment information when their card changes.
• Better Approval Rates: With up-to-date card data, transactions are more likely to be approved, which helps both shoppers and merchants.
• Global Potential: This partnership also opens the door for wider use of COF tokenization in other regions, meeting the growing need for secure and efficient digital payments.

According to data shared by Visa, tokenized transactions have driven a 30% drop in online fraud compared to traditional card number (PAN) transactions, while also delivering a 4% increase in authorization rates. These gains are especially significant in an environment where up to 44% of digital transactions are abandoned due to friction during the payment process.

In card-not-present scenarios, such as online purchases, Visa reports that tokenization yields more than a 3% boost in authorization rates, underscoring its critical role in streamlining payments and improving conversion without compromising security.

About Adyen

Adyen N.V. is a Dutch financial services and technology company founded in 2006 and headquartered in Amsterdam. Listed on Euronext Amsterdam (ticker ADYEN), Adyen provides a unified payments platform that enables businesses to accept e-commerce, mobile, and point-of-sale transactions around the globe. Its end-to-end infrastructure combines gateway, risk management, acquiring and issuing services, supporting international credit cards, local cash-based methods and mobile wallets through a single integration. In fiscal 2024, Adyen reported revenues of €1.996 billion, net income of €925 million and total assets of €11.425 billion, supported by a workforce of 4,345 employees operating across more than twenty countries.

Founded by Arnout Schuijff and Pieter van der Does, the name “Adyen”—meaning “start again” in Sranan Tongo—reflects its origins as the founders’ second venture after Bibit. After obtaining its pan-European acquiring license in 2012, Adyen steadily expanded its acquiring capabilities through additional licenses in Brazil, Singapore, Hong Kong, and beyond, culminating in its Amsterdam IPO on 13 June 2018. Profitability was achieved as early as 2011, and by 201,7 the platform was processing over €100 billion in annual payment volume. The company has since forged marquee partnerships—most notably becoming eBay’s primary payments processor in 2018—while continuing to add new regions and payment methods to its global footprint.

About JCB

JCB Co., Ltd. (formerly Japan Credit Bureau) is the only international payment brand based in Japan, headquartered in Minato-ku, Tokyo. Founded in 1961, JCB offers a comprehensive suite of payment solutions—including credit, debit, prepaid, contactless card services, merchant acquiring, risk management, and loyalty programs—through a single integration platform. Its global acceptance network spans over 54 million merchants and more than one million cash advance locations across over 190 countries and territories. JCB cards are now issued in 18 countries and regions, serving over 164 million cardmembers worldwide.

Since its inception on January 25, 1961, JCB has evolved into a private company with a capital base of ¥10.6 billion and a workforce of 4,373 employees as of June 2023. Under the leadership of President and CEO Takayoshi Futae, JCB’s core operations encompass credit card issuance, financing, collections, and gift card services. Through its associate, Japan Card Network Co., Ltd. (CARDNET), JCB manages a robust authorization and transaction-processing infrastructure that supports over 150 million cardmembers and an acceptance network of approximately 43 million merchants worldwide, driving an annual transaction volume of ¥43.3 trillion.

Conclusion

The partnership between Adyen and JCB to launch card-on-file tokenization is a timely and strategic response to growing concerns around payment security in the e-commerce space. By replacing sensitive card data with secure network tokens, the initiative directly addresses the rising threat of fraud and reduces operational friction for both merchants and consumers. As the first global rollout of JCB’s COF tokenization service, this collaboration not only strengthens payment security in Japan but also sets the stage for broader adoption worldwide. With proven benefits like improved authorization rates and reduced fraud, COF tokenization is poised to play a central role in the next phase of secure digital payments.