Mastercard reimagines online checkout; commits to achieving 100% tokenization of e-commerce by 2030 in Europe

June 11, 2024

What we say:

  • Mastercard today announced its vision for 100% tokenization of e-commerce in Europe by the end of the decade. This supports the global commitment to phase out manual card entry and make e-commerce more secure and accessible for all.
  • As payments become more complex, Mastercard is leveraging tokenization, streamlined guest checkout and payment passwords to ensure a consistent experience across all devices, browsers and operating systems.

What does it mean:

  • Contactless payments have made in-person payments seamless and ubiquitous – and there’s an opportunity to deliver the same experience to online payments.
  • Despite stringent security measures put in place by the payments industry, online commerce continues to suffer from security vulnerabilities caused by bad actors. According to Juniper Research, losses from online payment fraud will exceed $91 billion by 2028.
  • Mastercard brings together key solutions to reduce risks and make online commerce more than just ubiquitous: 1. Tokenization replaces a 16-19-digit payment card number with a secure token, reducing fraud and improving acceptance rates.
    2. To eliminate manual card entry, Mastercard makes it easier to embed click-to-pay options on merchant websites and enables bank partners to help customers register their cards.
    3. Payment keys use mobile-based online biometric authentication to eliminate passwords and one-time codes.

Why is it important:

  • Mastercard is at the forefront of this commitment in Europe because it has long been a leader in payments innovation, such as contactless payments.
  • Mastercard’s tokenization service, introduced in 2014, now secures 25% of all e-commerce transactions worldwide, and its implementation is accelerating by 50% year over year.
  • Tokenization unlocks a multitude of uses and benefits, such as helping transform everyday technologies like phones and cars into commerce devices.
  • Combining tokenization with Click to Pay and payment keys benefits the entire ecosystem. Consumers will benefit from faster and safer payments. Merchants will see increased sales, fraud protection, and higher acceptance rates. Issuers will gain top-class portfolio status and customer security.

Listen to the experts:

  • “As physical and digital experiences continue to converge, we are pushing the boundaries of what is possible,” said Jorn Lambert, chief product officer at Mastercard. “We are focused on connecting best-in-class digital services to deliver greater value, access and security to our customers and end consumers. We will continue to leverage the potential of these technologies to provide greater security, better experiences and overall new ways to pay.”
  • “In Europe, we’ve seen tokenization gain momentum across the ecosystem, with the convenience and reduced fraud rates selling themselves,” added Valerie Nowak, executive vice president of product and innovation at Mastercard Europe. “We are confident that achieving this vision by 2030 will benefit shoppers, retailers and card issuers alike.”