It's just a matter of time before Mastercard phases out manual card entry for online payments. By 2030, users won't need to enter numbers at checkout anymore.
Replacing the usual card will be a randomly generated token. Europeans checking out will no longer have to enter a series of numbers.
Mastercard announced that by 2030, everything will be "tokenized." Instead of the usual 16-digit card number, it will be a series of randomly generated "tokens."
The company has been working with merchants, fintechs, and banks to phase out manual card entry by 2030. This will introduce a one-click button across different platforms, securing accounts against real fraud, CNBC reported.
One change Mastercard plans is replacing passwords with passkeys. Additionally, technology will allow checkout payments using thumbprints.
By tokenization, Mastercard believes fraud will be reduced dramatically. It explained that financial losses due to fraud could breach the $91 million mark.
According to Moneycontrol, Mastercard claims that tokenization of card payments has increased by 50% annually. About 25% of the company's e-commerce transactions are secured through this method.
Mastercard will roll out the change in Europe, a region known for payment innovations like contactless payments and online banking.
"In Europe, we have seen tokenization gaining momentum across the ecosystem. The convenience and reduced rates of fraud sell themselves," said Valerie Nowak, Mastercard Europe's executive vice president.
