Mastercard commits to 100% e-commerce tokenization in Europe

Mastercard says it has a vision for 100% e-commerce tokenization in Europe by the end of the decade.

This supports a global commitment to phase out manual card entry and make e-commerce safer and more accessible for everyone.

As payments become more intricate, Mastercard, alongside Visa which announced its 10 billionth token issued last week, is leveraging tokenization, streamlined guest checkout and payment passkeys to create a consistent experience across devices, browsers, and operating systems.

Contactless payments have made in-person payments seamless and ubiquitous – there’s an opportunity to bring that same experience to online checkout.

Despite rigorous security solutions put in place by the payments industry, online commerce continues to face vulnerabilities due to bad actors.

According to research, losses from online payment fraud is forecasted to exceed $91 billion by 2028.

Mastercard says it is bringing together key solutions to reduce threats and make online commerce ubiquitous by:

1.  Tokenization replaces the 16–19-digit number on the payment card with a secure token, reducing fraud and also improving approval rates.
2.  Eliminating manual card entry, making it easier to embed Click to Pay into merchant sites and enabling bank partners to help people enrol their cards.
3.  Payment passkeys leveraging online mobile device-based biometric authentication to eliminate passwords and one-time codes.

“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,” adds 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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