Mastercard has announced plans to eliminate manual card entry and passwords by 2030, transitioning to a system based on tokenization and biometric authentication for online payments. This initiative builds upon the company’s recent launch of its Payment Passkey Service and represents a significant evolution in the company’s ongoing efforts to enhance payment security while improving the user experience.
Currently, over 30 percent of Mastercard transactions globally are tokenized, with some markets like India approaching 100 percent tokenization for e-commerce transactions. Tokenization technology replaces sensitive card data with unique digital tokens, significantly reducing the risk of fraud while maintaining transaction functionality. The company’s data indicates that tokenization has improved transaction approval rates by 3-6 percentage points, generating up to $2 billion in additional monthly global sales for merchants.
The payment giant’s research shows that 90 percent of consumers globally consider biometric authentication methods, such as facial scans or fingerprints, more secure and convenient than traditional passwords. This aligns with broader industry trends, as demonstrated by similar initiatives from competitors like Visa who have also embraced passkey technology for payment authentication.
To implement this transformation, Mastercard has established partnerships with major financial institutions including Commonwealth Bank, NatWest, Adyen, and Just Eat Takeaway.com. NatWest, in particular, has been at the forefront of biometric payment innovation, having previously conducted trials of biometric payment cards and other advanced authentication solutions.
Sandeep Malhotra, Executive Vice President of Products & Innovation at Asia Pacific, Mastercard, stated: “Just as contactless technology made in-person payments seamless and ubiquitous, Mastercard sees the opportunity to bring that same experience to online checkout. That’s why we’re calling ‘time’ on one-time passwords and multi-step payment authentication.”
The company is rolling out its Click to Pay feature, which incorporates payment passkeys for device-based biometric authentication, eliminating the need for one-time passwords and multi-step verification processes. This service has been launched in several regions, including Asia-Pacific, India, and the United Arab Emirates, with support from local banks and payment service providers such as Juspay and Tap Payments.
Maria Parpou, Executive Vice President of Mastercard Gateway, explained: “Our partnership with Tap Payments introduces a new standard in secure, seamless online transactions. By integrating Click to Pay with Payment Passkey, Mastercard is elevating the ecommerce experience, ensuring shoppers can transact confidently with ease.”
Source: PYMNTS
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