Fintech
Mastercard will replace card numbers with token-based payments across Europe by 2030
By 2030, Mastercard plans to eliminate the need for Europeans to manually enter their card numbers during online transactions, regardless of platform or device, CNBC reported. This shift towards tokenization and biometric authentication aims to improve both security and convenience for users.
The payments giant will reportedly phase out manual card number entry in favor of a randomly generated “token” to improve the way users pay for online services. The tokens will replace the familiar 16-digit card number and the service will be available for all Mastercard cards issued in Europe.
Valerie Nowak, executive vice president of products and innovation at MasterCard Europe, told CNBC: “In Europe, we have seen tokenization gain momentum across the ecosystem. Convenience and reduced fraud rates sell themselves. We are confident that achieving this vision by 2030 will be beneficial to acquirers , retailers, and card issuers.”
The company has collaborated with banks, fintech
businesses, merchants and other partners to ensure a smooth transition. This initiative aims to simplify the payment process and strengthen security against fraud. According to Mastercard, tokenization has grown rapidly, securing approximately 25% of all e-commerce transactions globally through its network.
With the introduction of passkeys, Mastercard users will no longer need to remember and enter passwords for every transaction. Biometric authentication, such as fingerprint verification, will enable one-click payments at checkout. This technology will also ensure that card details are stored in electronic systems or merchant systems wallets they are automatically updated when cards are renewed or replaced.
Europe leads the way
Mastercard’s push towards 100% tokenization in e-commerce aims to reduce fraud rates. By adopting tokenization, the
payments giant hopes to mitigate these losses and improve transaction security.
Europe has a history of innovation in payments technology. Europe has been at the forefront of adopting contactless payments and online banking. Mastercard believes the move to tokenization will be as significant as the adoption of chip and PIN or contactless payments.
The new token-based payment system promises to make online shopping as seamless as contactless in-store payments. Consumers will be able to use any device, from smartwatches to home assistants and even cars, to make secure payments.
Recently, Mastercard has expanded its global biometric screening program to Uruguay. This initiative is in collaboration with Ingenico, Fulcrum Biometrics, Fujitsu Frontech, Scanntech and Red Express. This project allows Red Express shoppers to pay using their palms. Shoppers can register their payment information and biometrics at the point of sale.
By 2030, Mastercard plans to eliminate the need for Europeans to manually enter their card numbers during online transactions, regardless of platform or device, CNBC reported. This shift towards tokenization and biometric authentication aims to improve both security and convenience for users.
The payments giant will reportedly phase out manual card number entry in favor of a randomly generated “token” to improve the way users pay for online services. The tokens will replace the familiar 16-digit card number and the service will be available for all Mastercard cards issued in Europe.
Valerie Nowak, executive vice president of products and innovation at MasterCard Europe, told CNBC: “In Europe, we have seen tokenization gain momentum across the ecosystem. Convenience and reduced fraud rates sell themselves. We are confident that achieving this vision by 2030 will be beneficial to acquirers , retailers, and card issuers.”
The company has collaborated with banks, fintech
businesses, merchants and other partners to ensure a smooth transition. This initiative aims to simplify the payment process and strengthen security against fraud. According to Mastercard, tokenization has grown rapidly, securing approximately 25% of all e-commerce transactions globally through its network.
With the introduction of passkeys, Mastercard users will no longer need to remember and enter passwords for every transaction. Biometric authentication, such as fingerprint verification, will enable one-click payments at checkout. This technology will also ensure that card details are stored in electronic systems or merchant systems wallets they are automatically updated when cards are renewed or replaced.
Europe leads the way
Mastercard’s push towards 100% tokenization in e-commerce aims to reduce fraud rates. By adopting tokenization, the
payments giant hopes to mitigate these losses and improve transaction security.
Europe has a history of innovation in payments technology. Europe has been at the forefront of adopting contactless payments and online banking. Mastercard believes the move to tokenization will be as significant as the adoption of chip and PIN or contactless payments.
The new token-based payment system promises to make online shopping as seamless as contactless in-store payments. Consumers will be able to use any device, from smartwatches to home assistants and even cars, to make secure payments.
Recently, Mastercard has expanded its global biometric screening program to Uruguay. This initiative is in collaboration with Ingenico, Fulcrum Biometrics, Fujitsu Frontech, Scanntech and Red Express. This project allows Red Express shoppers to pay using their palms. Shoppers can register their payment information and biometrics at the point of sale.