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Mastercard Aims for Full E-Commerce Tokenization in Europe by 2030

Mastercard aims to enhance digital payment security and reduce fraud through secure token technology and "Click to Pay" integration.


Mastercard aims to enhance digital payment security and reduce fraud through secure token technology and "Click to Pay" integration.
Credit: Foretoken Media 2024

WATERLOO, BE — Mastercard announced on Tuesday its ambitious goal to achieve full e-commerce tokenization across Europe by the end of the decade. This initiative is part of the company’s broader strategy to phase out manual card entry, enhancing e-commerce safety and accessibility.


Why E-Commerce Tokenization is Crucial


Tokenization involves replacing the 16 to 19-digit numbers on payment cards with secure tokens. This method aims to reduce fraud significantly, which is projected to exceed $91 billion by 2028. By eliminating the need for manual card entry, tokenization promises a safer shopping experience for consumers and reduced risks for merchants.


Integration of “Click to Pay” and Payment Passkeys


Mastercard’s initiative will also streamline the integration of “Click to Pay” features into merchant websites. This integration allows consumers to enroll their cards more easily through their bank partners. The combination of tokenization with “Click to Pay” and payment passkeys is expected to benefit the entire e-commerce ecosystem.


Consumers can look forward to faster and safer checkout experiences, while merchants are anticipated to see increased sales, enhanced fraud protection, and higher approval rates. Issuers will benefit from improved customer security.


Mastercard’s Commitment to Digital Services


Jorn Lambert, Mastercard's Chief Product Offer explained the potential and value,


“We’re focused on bringing best-in-class digital services together to deliver more value, access, and safety to our customers and the end-consumer. We’ll continue to harness the potential of these technologies to deliver enhanced security, better experiences, and overall, new ways to pay.”

Mastercard’s commitment to e-commerce tokenization marks a significant step toward a safer and more efficient digital payment landscape in Europe. By 2030, consumers and businesses alike can expect a more secure, streamlined, and accessible e-commerce environment.

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