Deeptesh Ghosh
Reading Time: 2 minutes
Mastercard today unveiled its goal to achieve 100% e-commerce tokenization in Europe by the end of this decade. This initiative aligns with a global mission to eliminate manual card entry and enhance the safety and accessibility of e-commerce for all.
As payment systems become more sophisticated, Mastercard is utilizing tokenization, streamlined guest checkout, and payment passkeys to deliver a uniform experience across various devices, browsers, and operating systems.
Key Points:
- Contactless Payments Transformation: While contactless payments have revolutionized in-person transactions, there’s a significant opportunity to bring this seamless experience to online checkouts.
- Security Concerns: Despite robust security measures in the payments industry, online commerce remains vulnerable to fraud. Juniper Research predicts online payment fraud losses will surpass $91 billion by 2028.
- Mastercard’s Solutions:
- Tokenization: Replacing the 16-19 digit card number with a secure token reduces fraud and improves approval rates.
- Click to Pay: Simplifying the integration of Click to Pay on merchant sites and helping bank partners enroll their customers’ cards to eliminate manual card entry.
- Payment Passkeys: Utilizing biometric authentication on mobile devices to replace passwords and one-time codes.
Significance:
Mastercard is spearheading this initiative in Europe due to its history of payments innovation, such as contactless payments. Since its introduction in 2014, Mastercard’s tokenization service now secures 25% of global e-commerce transactions, with adoption growing by 50% annually. Tokenization offers numerous benefits, transforming everyday technologies like phones and cars into commerce devices. Combining tokenization with Click to Pay and payment passkeys benefits the entire ecosystem, offering consumers faster and safer checkouts, merchants increased sales and fraud protection, and issuers top-of-wallet status and enhanced customer security.
Hear from the experts:
- “As physical and digital experiences continue to converge, we’re pushing the boundaries of what’s possible,” said Jorn Lambert, Chief Product Officer at Mastercard. “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.”
- “In Europe we have seen tokenization gaining momentum across the ecosystem, the convenience and reduced rates of fraud sell themselves,” added Valerie Nowak, Executive Vice President, Product & Innovation, Mastercard Europe. “We are confident that reaching this vision by 2030 is a win-win-win for shoppers, retailers and the card issuers alike.”
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