Payments giant Mastercard has unveiled a strategic initiative to eliminate manual card entry in online transactions in Europe, by 2030, making e-commerce safer and more accessible for everyone.
Starting in 2030, instead of using 16-digit card numbers for online transactions, it will be replaced with a randomly generated token. By leveraging technologies like tokenization and biometric authentication, Mastercard seeks to reduce reliance on traditional card numbers, which are susceptible to fraud.
The firm announced that it has been working with banks, fintechs, merchants, and other partners to phase out manual card entry for e-commerce by 2030 in Europe, in favor of a one-click button across all online platforms.
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A 2023 report from Jupiter Research revealed that merchant losses from online payment fraud will exceed $362 billion globally between 2023 and 2028, with losses of $91 billion alone in 2028. Merchants are reportedly facing new threats such as an increased use of AI for attacks.
In a bid to mitigate the increase in e-commerce fraud cases, Mastercard is bringing together key solutions to reduce threats and make online commerce safer. The payment giant is making it easier to embed Click to Pay into merchant sites, also enabling bank partners to help people enroll their cards.
Why Mastercard Roll-Out of Tokens for Online Payment Matters
Introduced in 2014, Mastercard’s tokenization service today secures 25% of all e-commerce transactions globally, with adoption, accelerating by 50% year-over-year. Also, it is understood that Tokenization unlocks a plethora of use cases and benefits, such as helping turn everyday technology, like phones and cars, into commerce devices.
Furthermore, merging tokenization with Click-to-pay and payment passkeys benefits the entire ecosystem. This will enable consumers to experience faster and safer checkouts. Merchants will see also increased sales, fraud protection, and higher approval rates. And issuers will gain top-of-wallet status and customer security.
Speaking on this, Chief Product Officer at Mastercard Jorn Lambert said,
“As physical and digital experiences continue to converge, we’re pushing the boundaries of what’s possible. We’re focused on bringing best-in-class digital services together to deliver more value, access, and safety to our customers and the end consumer. We’ll continue to harness the potential of these technologies to deliver enhanced security, better experiences, and overall, new ways to pay.”
Also speaking, Executive Vice President, Product & Innovation, Mastercard Europe Valerie Nowak said,
“In Europe, we have seen tokenization gaining momentum across the ecosystem, the convenience and reduced rates of fraud sell themselves. We are confident that reaching this vision by 2030 is a win-win-win for shoppers, retailers, and the card issuers alike.”
This move reflects Mastercard’s commitment to staying ahead of evolving payment trends and addressing the growing demand for secure, user-friendly online payment solutions.