Mastercard aims to achieve 100% e-commerce tokenisation in Europe by 2030, eliminating manual card entry and enhancing the safety and accessibility of online shopping.
Tokenisation, introduced by Visa and Mastercard in 2014, replaces the traditional 16-19 digit card numbers with a secure token, which helps reduce fraud and increases approval rates. Visa has recently announced the issuance of its 10 billionth token, while Mastercard reports that its tokenisation service currently secures 25% of all e-commerce transactions worldwide, with a 50% year-over-year increase in adoption.
Despite these advancements, online payment fraud remains a significant concern, with projections indicating it could surpass $91 billion by 2028. In response, Mastercard is intensifying its security measures. The company is simplifying the integration of Click to Pay into merchant websites to eliminate the need for manual card entry. Additionally, it is promoting the use of passkeys to leverage biometric authentication on mobile devices, effectively eliminating passwords and one-time codes.
Mastercard’s commitment to achieving 100% tokenisation in Europe reflects the region’s status as a leader in payment innovation. Valerie Nowak, EVP of Product and Innovation at Mastercard Europe, stated, “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.”