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Mastercard targets 100% e-commerce tokenisation in Europe

Mastercard has set itself a target of hitting 100% e-commerce tokenisation in Europe by 2030, phasing out manual card entry and making online shopping safer and more accessible.

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Mastercard targets 100% e-commerce tokenisation in Europe

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Introduced by Visa and Mastercard in 2014, tokenisation replaces the 16-19-digit number on the payment card with a secure token, reducing fraud and also improving approval rates.

Visa recently issued its 10 billionth token and Mastercard says that its tokenisation service today secures 25% of all e-commerce transactions globally, with adoption accelerating 50% year-over-year.

However, with online payments fraud still a major issue, predicted to exceed $91 billion by 2028, Mastercard is doubling down on security efforts.

Alongside tokenisation, the firm is making it easier to embed Click to Pay into merchant sites to eliminate manual card entry. It is also pushing passkeys, tapping online mobile device-based biometric authentication to eliminate passwords and one-time codes.

The company says it is making the "commitment" to hit 100% tokenisation in Europe first because of the continent's leadership as a payments innovator.

Valerie Nowak, EVP, product and innovation, Mastercard Europe, says: "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 the card issuers alike."

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Comments: (1)

Rustam Islamov

Rustam Islamov President at Ktonic

I envision several challenges currently presenting and will continue to present for Mastercard, including, Widespread Adoption, Integration with Existing Systems, Regulatory Compliance, Consumer and Merchant Acceptance, Security, Cost implications, and Technical Scalability and Reliability, however, MC is a leader in this space and a high confidence is given for them to accompish this goal by 2030, or beyond.

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