Mastercard has outlined its vision for the future of online shopping, aiming to revolutionise the payment experience by eliminating physical card numbers and outdated security measures.
By combining tokenization with biometric authentication, Mastercard seeks to make online transactions safer, faster, and more convenient than ever.
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The company’s vision centres on removing friction from the online checkout process.
By 2030, it plans to replace manual card entry and static passwords with on-device biometric authentication. This approach ensures sensitive personal and payment data remains secure, paving the way for a more user-friendly experience.
Fraud continues to be a major challenge for online transactions, with rates seven times higher than in physical stores.
Mastercard’s research shows that nearly two-thirds of consumers struggle with entering card details, and 25% abandon their carts due to complex or slow processes.
By addressing these issues, it aims to enhance trust and drive e-commerce growth.
Tokenization at the Core
Tokenization, a technology introduced a decade ago, has been pivotal in securing digital transactions.
By replacing sensitive card details with encrypted tokens, the company has reduced fraud risks while improving transaction approval rates by 3-6 percentage points globally.
This translates into $2 billion in additional monthly sales for merchants.
This technology also benefits physical cards, with Mastercard working toward making numberless cards the default. These cards further reduce fraud risks and align with the company’s commitment to secure, seamless payments.
Global Adoption and Partnerships
Today, over 30% of Mastercard transactions are tokenized, with markets like India nearing full adoption for e-commerce.
In Latin America and the Caribbean, nearly 100% of issuers are equipped to implement tokenization at checkout.
The Mastercard Payment Passkey Service, already launched in India, Singapore, and the UAE, is expanding globally.
Meanwhile, its Click to Pay solution is gaining traction with issuers and merchants, simplifying payments for millions of consumers in regions such as Brazil, Mexico, and Colombia.
Collaboration Across the Ecosystem
Mastercard’s vision extends beyond technology. The company is working closely with banks, payment service providers, and merchants to ensure these innovations reach consumers.
This ecosystem-wide approach is designed to deliver consistent improvements, reduce fraud, and unlock new sales opportunities.
By 2030, Mastercard envisions a payment landscape where online shopping is as seamless as tapping a card in-store, setting a new standard for digital payments – one that prioritises security, convenience, and trust for consumers and merchants alike.
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