Mastercard Europe: Aiming for 100% eCommerce Tokenization by 2030

According to recent research, losses from online payment fraud are forecast to hit $91 billion by 2028. In response to this pressing issue, Mastercard announced its intention to achieve 100% eCommerce tokenization across Europe by 2030.

This ambitious commitment represents a significant push toward enhancing the security of digital transactions and streamlining online shopping experiences for consumers. But what exactly is this initiative all about, which changes does it entail, and how will it influence the future of payments and commerce? Read on to find out the answers to these burning questions!

What Is Tokenization & How Will Mastercard Use It?

Before we delve into the specifics of Mastercard’s newly announced commitment, let’s take a moment to review how tokenization works.

Due to this, tokenization has been actively gaining momentum in the payment security field, and Mastercard’s initiative is set to further accelerate its adoption. The company is already actively implementing biometric authentication to effectively facilitate tokenization without the need for passwords and one-time codes.

Mastercard’s Master Plan: What Outcomes to Expect?

Yet, while Mastercard has set the course toward complete eCommerce tokenization in Europe, this action alone would not have addressed the payment fraud-related challenges comprehensively. Due to this, the industry giant is also set to continue simplifying the integration of Click to Pay on merchant websites and enabling bank partners to assist customers with card enrollment.

Another crucial security enhancement that Mastercard is aiming to introduce in the near future is the automatic updating of tokenized cards. This feature will keep consumers’ payment information up-to-date without the need for manual intervention, which will significantly mitigate the risk of sensitive data being outdated or compromised.

All of these measures are expected to have a profound impact not only on the European eCommerce landscape but on the payment industry as a whole. For consumers, it means a safer and more seamless checkout experience, free from the need to enter card details manually. For merchants, it translates to increased sales, better fraud protection, and higher transaction approval rates.

What’s more, the initiative is also sure to benefit card issuers by ensuring top-of-wallet status and enhanced customer security.

How Does the Tokenization Initiative Fit in Mastercard’s Bigger Picture?

The newly announced goal aligns with Mastercard’s global commitment to create a seamless, secure, and consistent online shopping experience across all devices and platforms.

According to Jorn Lambert, Chief Product Officer at Mastercard, the company aims to push the boundaries of what’s possible as physical and digital shopping experiences continue to converge. He also stated that Mastercard is focusing on bringing best-in-class digital services together to deliver more value, access, and safety to its clients and end-consumers.