Mastercard plans to phase out the need to enter card numbers, static passwords and one-time codes when making online purchases by 2030.
The company aims to make the change globally, replacing this process with a new one enabled by a combination of tokenization and biometric authentication that will make online checkout smoother and more secure, it said in a Wednesday (Nov. 13) press release emailed to PYMNTS.
“Just like the transition from signing and swiping to tapping cards, we’re now moving from manual entry and passwords to seamless and secure payments in just a few clicks,” Mastercard Chief Product Officer Jorn Lambert said in the release. “With this shift we are protecting sensitive data through enhanced encryption and tokenization technologies.”
Mastercard’s vision of commerce without the need for card numbers and passwords is already becoming a reality in major markets, according to the release.
The company’s tokenization technology has reduced cart abandonment and increased transaction approvals by 3 to 6 percentage points, while also minimizing the risk of fraud, the release said.
Today, the Mastercard Digital Enablement Service (MDES) tokenizes more than 30% of Mastercard transactions worldwide, the Mastercard Payment Passkey Service continues to scale globally, and Click to Pay is expanding as more issuers, acquirers, payment service providers and other channel partners enable the technology, per the release.
“As payments continue to be embedded across a range of commerce experiences, we’re leading the way to a global economy that empowers everyone — providing consumers with greater control, convenience and peace-of-mind while unlocking new sales for merchants and lowering fraud for issuers,” Lambert said in the release.
The payment industry must remain focused on enhancing security while reducing friction at a time when a growing array of available payment methods — including traditional card payments, digital wallets and buy now, pay later (BNPL) options — has added more complexity to the mobile checkout experience, Jennifer Marriner, executive vice president of global acceptance solutions at Mastercard, told PYMNTS in an interview posted Nov. 5.
“We’re committed to making checkout faster and more secure, especially by minimizing manual entry, leveraging tokenization and employing biometric authentication,” Marriner said.
