June 11, 2024
What we want to say:
- Mastercard today announced its vision to tokenize 100% e-commerce transactions in Europe by the end of the decade, supporting global efforts to phase out manual card entry and make e-commerce more secure and accessible for everyone.
- As payments become more complex, Mastercard is leveraging tokenization, streamlined guest checkout and payment passkeys to deliver a consistent experience across devices, browsers and operating systems.
What it means:
- Contactless payments have made in-person payments seamless and ubiquitous, and now you have the opportunity to bring that same experience to your online checkout.
- Despite rigorous security solutions implemented by the payments industry, online commerce continues to face vulnerabilities from bad actors. According to Juniper Research, losses from online payment fraud are predicted to exceed $91 billion by 2028.
- Mastercard is integrating key solutions to mitigate threats and make online commerce not just more popular, but more widespread. 1. Tokenization replaces a payment card's 16- to 19-digit number with a secure token, reducing fraud and improving authorization rates.
2. To eliminate manual card entry, Mastercard is making Click to Pay easier to embed on merchant sites and allowing banking partners to help people register their cards.
3. Payment Passkey leverages online, mobile device-based biometric authentication to eliminate passwords and one-time codes.
Why is this important:
- Mastercard is leading this effort in Europe, as the company has long been a leader in payments innovation, including contactless payments.
- Mastercard’s tokenization service, introduced in 2014, now protects 25% of all e-commerce transactions worldwide, with adoption accelerating 50% year-over-year.
- Tokenization enables a variety of use cases and benefits, including turning everyday technology like mobile phones and cars into commerce devices.
- Integrating tokenization with Click to Pay and Payment Passkey benefits the entire ecosystem: consumers experience faster and more secure checkouts, retailers see increased sales, fraud prevention and improved authorization rates, and issuers gain top wallet status and customer security.
Let's hear what the experts have to say:
- “As physical and digital experiences continue to converge, we are pushing the boundaries of what's possible,” said Jorn Lambert, Chief Product Officer, Mastercard. “We are focused on integrating best-in-class digital services to provide our customers and end consumers with more value, access and safety. We will continue to leverage the potential of these technologies to deliver increased security, improved experiences and overall new ways to pay.”
- “Tokenization is gaining momentum across the ecosystem in Europe, with convenience and lower fraud rates being natural selling points,” added Valerie Nowak, executive vice president of product and innovation at Mastercard Europe. “We believe that delivering on this vision by 2030 will be a win-win for shoppers, retailers and card issuers.”
