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Mastercard has set an ambitious goal to achieve 100% e-commerce tokenisation in Europe by 2030, aiming to phase out manual card entry and enhance the security and accessibility of online shopping.
Tokenisation, introduced by Visa and Mastercard in 2014, replaces the traditional 16-19-digit payment card number with a secure token, thereby reducing fraud and improving approval rates. Visa recently issued its 10 billionth token, and Mastercard’s tokenisation service currently secures 25% of all global e-commerce transactions, with adoption increasing by 50% year-over-year.
Despite these advances, online payment fraud remains a significant issue, with losses predicted to exceed $91 billion by 2028. In response, Mastercard is intensifying its security efforts.
In addition to tokenisation, Mastercard is facilitating the integration of Click to Pay on merchant sites to eliminate manual card entry. The company is also promoting passkeys, which utilize mobile device-based biometric authentication to replace passwords and one-time codes.
Mastercard has chosen to pursue 100% tokenisation in Europe first due to the continent’s role as a leader in payment innovation.
Valerie Nowak, Executive Vice President of Product and Innovation at Mastercard Europe, stated: “In Europe, we have seen tokenisation gaining momentum across the ecosystem. The convenience and reduced rates of fraud make a compelling case. We are confident that achieving this vision by 2030 will benefit shoppers, retailers, and card issuers alike.”
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