In a bold move to enhance online payment security, Mastercard has set an ambitious target to achieve 100% e-commerce tokenisation in Europe by 2030. This initiative aims to phase out manual card entry, making online shopping safer and more accessible for all.
Revolutionising Online Payments
Tokenisation, introduced by Visa and Mastercard in 2014, replaces the traditional 16-19-digit payment card number with a secure token. This technology not only reduces fraud but also improves approval rates for transactions. With Visa recently issuing its 10 billionth token and Mastercard securing 25% of all e-commerce transactions globally through its tokenisation service, the adoption rate is accelerating by 50% year-over-year.
Tackling Online Fraud
Despite these advancements, online payment fraud remains a significant issue, projected to surpass $91 billion by 2028. To combat this, Mastercard is intensifying its security efforts. In addition to tokenisation, the company is making it easier to embed Click to Pay into merchant sites, eliminating the need for manual card entry. Furthermore, Mastercard is promoting passkeys, leveraging mobile device-based biometric authentication to replace passwords and one-time codes.
Leading the Way in Europe
Mastercard’s commitment to achieving 100% tokenisation in Europe first underscores the continent’s role as a leader in payment innovation. Valerie Nowak, EVP, product and innovation at Mastercard Europe, emphasizes the growing momentum of tokenisation across the ecosystem: “In Europe, we have seen tokenisation 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 card issuers alike.”
Looking Ahead
Mastercard’s dedication to secure and convenient online shopping experiences reflects a broader trend towards safer digital transactions. By prioritizing e-commerce tokenisation in Europe, Mastercard is paving the way for a future where online payments are not only efficient but also highly secure.
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