The report states that by 2030, Mastercard plans to eliminate the need for users in the European region to manually enter their card numbers during online transactions, regardless of the platform or device used for the transaction. The aim is to enhance user security and convenience through tokenization and biometric authentication features.

Supporting Online Transactions

This payment giant will gradually phase out manual entry of card numbers and instead adopt randomly generated "tokens" to enhance how users pay for online services. Tokens will replace the familiar 16-digit card numbers, and this service will apply to all Mastercard cards issued in Europe.

Valérie Nowak, Executive Vice President of Product and Innovation for Mastercard Europe, stated, "In Europe, we have already seen tokenization become increasingly popular throughout the ecosystem. The benefits of convenience and reduced fraud are evident. We believe that achieving this vision by 2030 creates a win-win-win situation for shoppers, retailers, and issuers."

The company has collaborated with banks, fintech companies, merchants, and other partners to ensure a smooth transition, aiming to simplify the checkout process and strengthen security measures against fraud. Mastercard claims that tokenization has rapidly grown within its global network, providing security for approximately 25% of all e-commerce transactions.

With the introduction of tokens, Mastercard users will no longer need to remember and input passwords for each transaction. Biometric authentication, such as fingerprint verification, will enable one-touch payment at checkout, and card details stored in merchant systems or digital wallets will be automatically updated upon card renewal or replacement.

Europe Leading the Way

Mastercard's drive to achieve 100% tokenization in e-commerce aims to reduce fraud rates. By embracing tokenization, this payment giant hopes to minimize such losses and enhance transaction security.

Europe has a history of innovation in payment technology, being a pioneer in adopting contactless payments and online banking. Mastercard believes that transitioning to tokenization will be as significant as adopting chip and PIN or contactless payments.

The new token-based payment system promises to make online shopping as seamless as in-store contactless payments, allowing consumers to securely pay using any device, from smartwatches to home assistants, and even cars.

Recently, Mastercard expanded its global biometric checkout program to Uruguay, in collaboration with Ingenico, Fulcrum Biometrics, Fujitsu Frontech, Scanntech, and Red Express. This initiative allows Red Express shoppers to pay using their palms, with shoppers registering their payment and biometric information at point-of-sale terminals.