Mastercard to replace card numbers with token payments across Europe by 2030 – TradingView News

According to CNBC, by 2030 Mastercard plans to eliminate the need for Europeans to manually enter their card number when making online transactions, regardless of platform or device. This shift towards tokenization and biometric authentication aims to increase both security and user experience.

Online transaction support

The payments giant is reportedly set to phase out manual card number entry in favor of a randomly generated ‘token’ to streamline the way users pay for online services. The tokens will replace the current 16-digit card number, and the service will be available for all Mastercard cards issued in Europe.

Valerie Nowak, executive vice president of product and innovation at Mastercard Europe, told CNBC: “In Europe, we have seen tokenization gaining momentum across the ecosystem. Convenience and reduced fraud rates sell themselves. We are confident that achieving this vision through 2030 will be a win-win for shoppers, retailers and card issuers alike.”

The company worked with banks, fintech companies, merchants and other partners to ensure a smooth transition. This initiative aims to simplify the checkout process and increase security against fraud. According to Mastercard, tokenization is growing rapidly, securing approximately 25% of all e-commerce transactions worldwide on its network.

With the introduction of keys, Mastercard users will no longer have to remember and enter passwords for every transaction. Biometric authentication, such as fingerprint verification, will enable one-click payments at checkout. This technology will also ensure that card details stored in merchant systems or e-wallets are automatically updated when cards are renewed or replaced.

Europe is leading the way

Mastercard’s move towards 100% tokenization for e-commerce purposes to reduce fraud. By using tokenization, the payments giant hopes to mitigate these losses and increase transaction security.

Europe has a long history of innovation in payment technology. Europe is leading the way in implementing contactless payments and online banking. Mastercard believes that the move towards tokenization will be as significant as the adoption of chips and PINs or contactless payments.

The new token-based payment system will make online shopping as seamless as contactless payments in stores. Consumers will be able to use any device – from smartwatches to home assistants and even cars – to make secure payments.

Mastercard recently expanded its global biometric payments program to Uruguay. This initiative is carried out in cooperation with Ingenico, Fulcrum Biometrics, Fujitsu Frontech, Scanntech and Red Express. Thanks to this project, Red Express customers will be able to pay with their hands. Shoppers can register their payment and biometric details at the point of sale.