Mastercard is intending to revolutionize the online payment landscape. Mastercard is working on a project to phase out manual card entry by 2030.

Their idea is to improve online payments by making them even more seamless and secure by using top-notch technologies such as tokenization and biometrics. This blog is intended to review 10 key changes that are part of this innovative project by Mastercard.

The Complete Phase-Out of Manual Card Entry by 2030

Starting in 2030, EU cardholders will no longer need to manually enter card details when purchasing online. Instead, Mastercard is launching a one-click payment system that will be implemented across all platforms and devices. By doing so, Mastercard aims to simplify the checkout process as well as enhance security by reducing the exposure of card details.

Securing Transactions with Tokenization: The Future of Card Details

Good old 16-digit card numbers will soon phase out! Mastercard is replacing them with tokens (randomly generated). Tokens are already at a rate of  25% of Mastercard transactions and significantly reduce the risk of fraud. For reference, tokens are like substitute card numbers. When you make a payment, the real card number isn't used. Instead, a special code (the token) is used to represent it, keeping your actual card details safe and hidden.

Enhancing Payment Security with Biometric Authentication

Mastercard is also increasingly adopting device biometric authentication, e.g. thumbprints, for online transactions. This approach contributes to security enhancement, compared to traditional passwords, which are easily compromised. Biometric authentication is making the payment process both faster and more secure for users.

"Tokenization is one of the most powerful tools we have to protect consumers' data and reduce the risk of fraud. By replacing sensitive card information with unique tokens, we create a safer and more secure digital ecosystem." Ajay Banga, Executive Chairman of Mastercard

Tokenization’s Role in Reducing eCommerce Fraud

Fraud on online payment is a growing concern, it is expected that will lose more than $91 billion by 2028 if there is no intervention with the currently available systems. Tokenization helps stop fraud by making stolen tokens useless to hackers. This strong security feature is a big step forward in protecting online shopping.

Facilitating Seamless Recurring Payments Through Tokenization

One of the tokenization's most important features is its ability to update recurring transactions “seamlessly”. When a card has expired and is replaced or renewed, the respective token is automatically updated everywhere the card information is stored. This means no more need to update the card information for subscriptions and recurring payments.

Mastercard's Click to Pay: Streamlining Online Purchases

Mastercard's Click to Pay solution is going (as per MC’s expectations) to revolutionize online ordering. By adding this feature to shopping sites and enabling auto-enrollment for their customers (cardholders), Mastercard is making online shopping safer and much more convenient. Click to Pay makes the checkout process easier, contributing to the overall shopping experience.

Introducing Payment Passkeys: Simplifying Online Transactions

No need to remember long and complex passwords! (Upper case, digits, numbers, symbols…). Meet Mastercard’s payment passkeys! Passkeys use on-device biometrics for authentication (based on industry standards) and offer an extra layer of security and convenience, making online shopping smoother and less “dangerous”.

Mastercard's Collaborative Strategy for Payment Security Enhancement

This is a team effort, Mastercard is collaborating with banks, fintechs, and merchants to ensure a smooth transition. This set of mind and collaboration is very important for driving adoption and success and relies on bringing together relevant stakeholders to enhance payment security across all online payment domains.

The Increasing Adoption of Secure Payment Technologies

In the last couple of years, we have witnessed more and more adoption of secure payment technologies like tokenization and biometric authentication. According to Mastercard: a 50% annual increase in tokenized payments, indicates a strong “industry and consumer acceptance”. This trend will probably only grow as online shopping is becoming more and more the major method of consuming products and services.

1Mastercard’s Vision: Seamless and Secure Online Payments

These changes suggest that  Mastercard is trying to reach a future where online shopping is as seamless and secure as contactless transactions in brick-and-mortar businesses. By using advanced technologies and actively pushing for industry collaboration, Mastercard is trying to enhance user experiences and reduce online card fraud. This vision by Mastercard is a big step forward in how online payments are developing.

The Impact of Mastercard's New Payment Technologies on eCommerce

"As we continue to innovate in the payments space, the goal is to make transactions not only more secure but also more intuitive. Technologies like tokenization and biometric authentication are key to achieving this vision." Jack Dorsey, CEO of Block (formerly Square)

The efforts by Mastercard are set to have an impressive impact on the eCommerce and payments industry. Enhancing security measures will positively affect consumer confidence, while simpler processes should improve operational efficiency for businesses. Mastercard's initiatives are aiming to shape the future of online payments, making them safer and more convenient for everyone.

To conclude, with these significant changes, Mastercard is not just keeping up with the times but paving the way for the future of online payments.