Mastercard Commits to 100% Digital Commerce Tokenization in Europe

Mastercard (NYSE: MA) announced its vision for 100% e-commerce tokenization in Europe by the end of the decade.

This supports a global commitment to “phase out manual card entry and make e-commerce safer and more accessible for everyone.”

As payments become more intricate, Mastercard is leveraging tokenization, “streamlined guest checkout and payment passkeys to create a consistent experience across devices, browsers, and operating systems.”

Contactless payments have made in-person payments seamless and ubiquitous – “there’s an opportunity to bring that same experience to online checkout.”

Despite rigorous security solutions put in place by the payments industry, online commerce continues to “face vulnerabilities due to bad actors.”

According to Juniper Research, losses from online payment fraud “is forecasted to exceed $91 billion by 2028.”

Mastercard is bringing together “key solutions to reduce threats” and make online commerce not only ubiquitous:

  • Tokenization replaces the 16–19-digit number on the payment card with a secure token, reducing fraud and also improving approval rates.
  • To eliminate manual card entry, Mastercard is making it easier to embed Click to Pay into merchant sites and enabling bank partners to help people enroll their cards.
  • Payment passkeys are leveraging online mobile device-based biometric authentication to eliminate passwords and one-time codes.

Mastercard is leading on this commitment “with Europe because it’s long been a leader in payments innovation, for example Contactless.”

Introduced in 2014, Mastercard’s tokenization service today “secures 25% of all e-commerce transactions globally, with adoption accelerating 50% year-over-year.”

Tokenization unlocks a plethora of use-cases and benefits, “such as helping turn everyday technology, like phones and cars, into commerce devices.”

Merging tokenization with Click to Pay and payment passkeys “benefit the entire ecosystem. Consumers will experience faster and safer checkouts.”

Merchants will see increased sales, fraud protection, and “higher approval rates. And issuers will gain top-of-wallet status and customer security.”

Jorn Lambert, Chief Product Officer at Mastercard, said:

“As physical and digital experiences continue to converge, we’re pushing the boundaries of what’s possible. 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.”

Valerie Nowak, Executive Vice President, Product & Innovation, Mastercard Europe said:

“In Europe we have seen tokenization gaining momentum across the ecosystem, the convenience and reduced rates of fraud sell themselves. We are confident that reaching this vision by 2030 is a win-win-win for shoppers, retailers and the card issuers alike.”



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