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Mastercard reinvents checkout with password and number free payments

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Mastercard has announced plans to transform online shopping by 2030, aiming to eliminate manual card entry and passwords in favor of biometric authentication. The company will combine tokenization with biometric authentication for secure, seamless checkout. Currently, over 30% of Mastercard transactions worldwide are tokenized, with key markets like India approaching 100% for e-commerce. The initiative addresses significant challenges in online shopping, including fraud rates that are seven times higher online than in stores, and cart abandonment issues where 25% of carts are abandoned due to complex checkout processes. Tokenization is already showing positive results, increasing transaction approvals by 3-6 percentage points and generating up to $2 billion in additional global sales monthly.

Mastercard ha annunciato piani per trasformare lo shopping online entro il 2030, con l'obiettivo di eliminare l'inserimento manuale delle carte e delle password a favore dell'autenticazione biometrica. L'azienda combinerà la tokenizzazione con l'autenticazione biometrica per un checkout sicuro e senza soluzione di continuità. Attualmente, oltre il 30% delle transazioni Mastercard a livello mondiale sono tokenizzate, con mercati chiave come l'India che si avvicinano al 100% per l'e-commerce. L'iniziativa affronta sfide significative nello shopping online, incluse le percentuali di frode che sono sette volte superiori online rispetto ai negozi, e i problemi di abbandono del carrello, in cui il 25% dei carrelli viene abbandonato a causa di processi di checkout complessi. La tokenizzazione sta già mostrando risultati positivi, aumentando le approvazioni delle transazioni di 3-6 punti percentuali e generando fino a 2 miliardi di dollari in vendite globali aggiuntive ogni mese.

Mastercard ha anunciado planes para transformar las compras en línea para el 2030, con el objetivo de eliminar la entrada manual de tarjetas y contraseñas a favor de la autenticación biométrica. La empresa combinará la tokenización con la autenticación biométrica para un proceso de pago seguro y fluido. Actualmente, más del 30% de las transacciones de Mastercard en todo el mundo están tokenizadas, con mercados clave como India acercándose al 100% para el comercio electrónico. La iniciativa aborda desafíos significativos en las compras en línea, incluidas tasas de fraude que son siete veces más altas en línea que en las tiendas y problemas de abandono de carrito, donde el 25% de los carritos se abandonan debido a procesos de pago complejos. La tokenización ya está mostrando resultados positivos, aumentando la aprobación de transacciones en 3-6 puntos porcentuales y generando hasta 2 mil millones de dólares en ventas globales adicionales mensualmente.

마스터카드2030년까지 온라인 쇼핑을 혁신할 계획을 발표했습니다. 수동 카드 입력 및 비밀번호 대신 생체 인증을 도입할 예정입니다. 이 회사는 안전하고 원활한 결제를 위해 토큰화와 생체 인증을 결합할 것입니다. 현재 전 세계적으로 30% 이상의 마스터카드 거래가 토큰화되고 있으며, 인도와 같은 주요 시장은 전자상거래에서 100%에 가까워지고 있습니다. 이 이니셔티브는 온라인 쇼핑의 주요 문제를 해결하는데 중점을 두고 있으며, 여기에는 매장에서보다 온라인에서 사기 비율이 7배 더 높은 것과 복잡한 결제 프로세스 때문에 25%의 장바구니가 버려지는 문제가 포함됩니다. 토큰화는 이미 긍정적인 결과를 보여주고 있으며, 거래 승인 비율을 3-6 포인트 증가시키고, 매달 최대 20억 달러의 추가 글로벌 판매를 창출하고 있습니다.

Mastercard a annoncé des plans pour transformer les achats en ligne d'ici 2030, visant à éliminer la saisie manuelle des cartes et des mots de passe au profit de l'authentification biométrique. L'entreprise combinera la tokenisation avec l'authentification biométrique pour un processus de paiement sécurisé et fluide. Actuellement, plus de 30% des transactions Mastercard dans le monde sont tokenisées, les marchés clés comme l'Inde se rapprochant de 100% pour l'e-commerce. L'initiative vise des défis importants dans les achats en ligne, y compris des taux de fraude qui sont sept fois plus élevés en ligne que dans les magasins, ainsi que des problèmes d'abandon de panier, où 25% des paniers sont abandonnés en raison de processus de paiement complexes. La tokenisation montre déjà des résultats positifs, augmentant l'approbation des transactions de 3-6 points de pourcentage et générant jusqu'à 2 milliards de dollars de ventes mondiales supplémentaires chaque mois.

Mastercard hat Pläne angekündigt, den Online-Einkauf bis 2030 zu transformieren, mit dem Ziel, die manuelle Eingabe von Karten und Passwörtern zugunsten von biometrischer Authentifizierung zu eliminieren. Das Unternehmen wird Tokenisierung mit biometrischer Authentifizierung kombinieren, um einen sicheren und nahtlosen Checkout zu gewährleisten. Derzeit sind über 30% der Mastercard-Transaktionen weltweit tokenisiert, wobei wichtige Märkte wie Indien sich dem 100% für den E-Commerce nähern. Die Initiative geht auf bedeutende Herausforderungen im Online-Shopping ein, einschließlich Betrugsraten, die online siebenmal höher sind als im Einzelhandel, und Probleme mit abgebrochenen Warenkörben, bei denen 25% der Körbe aufgrund komplizierter Checkout-Prozesse abgebrochen werden. Die Tokenisierung zeigt bereits positive Ergebnisse und erhöht die Genehmigungsraten von Transaktionen um 3-6 Prozentpunkte und generiert monatlich bis zu 2 Milliarden Dollar zusätzliche globale Verkäufe.

Positive
  • Tokenization increasing transaction approvals by 3-6 percentage points
  • Generating up to $2 billion in additional global sales monthly
  • 30% of global transactions already tokenized
  • Potential reduction in fraud rates through enhanced security measures
  • Technology adoption expanding across major markets and partners
Negative
  • Current online fraud rates 7x higher than in-store
  • 25% cart abandonment rate due to complex checkout processes

Insights

This strategic shift towards biometric authentication and tokenization represents a significant technological evolution in payment processing. The initiative addresses critical pain points with 7x higher online fraud rates compared to in-store purchases and 25% cart abandonment due to complex checkouts. The implementation is already showing tangible results, with tokenization improving transaction approvals by 3-6% and generating up to $2 billion in additional monthly global sales.

The technology adoption metrics are particularly compelling, with 30% of global Mastercard transactions already tokenized and key markets like India approaching 100% for e-commerce. This infrastructure investment positions Mastercard favorably against competitors in the digital payments space while creating new revenue opportunities through increased transaction volumes and reduced fraud-related losses.

The elimination of physical card numbers and transition to biometric authentication represents a major advancement in payment security architecture. This shift will significantly reduce card-not-present fraud, which currently poses substantial financial risks to merchants and issuers. The integration of tokenization technology effectively creates a dynamic security layer that renders stolen card data useless to criminals.

The business impact extends beyond security - streamlined authentication processes will likely increase conversion rates for merchants while reducing operational costs associated with fraud management and customer service. The global rollout strategy, supported by partnerships with major financial institutions and merchants, demonstrates strong ecosystem buy-in that will accelerate adoption.

By the end of the decade, Mastercard plans to phase out manual card and password entry in favor of smiles and fingerprints globally, paving the way for a future where numberless cards are the default

MIAMI--(BUSINESS WIRE)-- Mastercard today announced its vision to transform online shopping by 2030. Imagine a future where no physical card numbers are needed for purchases. Where passwords or one-time codes are obsolete, and secure on-device biometrics allow seamless authentication across devices and websites, ensuring personal data stays on the device. This vision is already becoming a reality today in major markets and is poised to become ubiquitous within a few short years.

By 2030, Mastercard aims to eliminate the need for manual card entry and one-time or static passwords by combining tokenization, introduced ten years ago to protect sensitive personal and payment data, with biometric authentication for secure, seamless checkout. In doing so, Mastercard seeks to ensure that every online transaction across its network can be tokenized and authenticated, making online checkout smoother and safer.

Even with the rise of cutting-edge digital payment solutions, online shopping still faces challenges and points of friction. Fraud rates are seven times higher online than in stores1, as criminals exploit exposed card numbers, creating headaches for cardholders and huge losses for merchants and card issuers. Plus, according to Mastercard research2, nearly two-thirds of shoppers still struggle through manually entering their card details, with 25% of carts abandoned because checkout is too complex or slow.

Paving the way for safer and quicker payments for everyone, this vision also unlocks a new era for physical cards by making the possibility of numberless physical cards the default, further reducing the risk of fraud should a card be lost or stolen.

Mastercard’s technology is already making online checkout quicker for businesses. Today, tokenization is reducing cart abandonment and growing transaction approvals by 3-6 percentage points across regions and generating up to $2 billion in additional global sales each month3. Additionally, the risk of fraud is minimized. These advancements provide significant benefits to the wider ecosystem, including banks, consumers, and businesses.

“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. With this shift we are protecting sensitive data through advanced encryption and tokenization technologies,” said Jorn Lambert, chief product officer at Mastercard. “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.”

“Consumers in Latin America and the Caribbean are turning to digital solutions for financial services to make their lives better, and we are happy to see so many partners embracing the technologies that are increasing trust in digital payments and bringing the online shopping experience to a new level”, said Silvana Hernandez, Executive Vice President, Core Payments, Mastercard Latin America and the Caribbean region.

Core to this commitment to bring these new technologies together by 2030 is continued partnership and momentum across the payments ecosystem. Today, Mastercard is working with a range of players in Latin America and the Caribbean region to deploy and scale these technologies:

  • Today, more than 30% of Mastercard transactions worldwide are tokenized4 through Mastercard Digital Enablement Service (MDES), with key markets like India already nearing 100% for e-commerce. Latin American players have embraced the technology, with close to 100% of issuers enabled to implement it at the checkout.
  • The Mastercard Payment Passkey Service, which was first rolled out to millions of consumers in India, Singapore and the United Arab Emirates, continues to scale globally. In Latin America, Sympla, in Brazil, and Yuno, a global payments orchestrator, are ready to start deploying it.
  • Click to Pay is rapidly expanding as issuers like Santander and Inbursa in Mexico, and Banco Inter and Carrefour Bank in Brazil, and more enroll their card portfolios. Acquirers, payment service providers and other channel partners including Adyen, Prestashop, and Yuno are also enabling this technology. And consumers are using Click to Pay to make everyday purchases at merchants including Arcos Dorados in Brazil, Chile and Mexico, Clic in Colombia, Viva in Mexico and coming soon Ingresso.com in Brazil.

Mastercard continues to innovate for the speed of life – delivering solutions and collaboration to fuel breakthroughs that actually break through. This move builds upon several efforts from Mastercard to reimagine the card – in 2021, the company was the first payments network to formally phase out the magnetic stripe in favor of newer and more secure technologies.

https://www.youtube.com/watch?v=OG_Q_TeTvJY

About Mastercard (NYSE: MA)

Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a sustainable economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.

www.mastercard.com

1 Mastercard Data Warehouse
2 Mastercard Global Foresights, Insights & Analytics: Click to Pay Attitudes & Usage Research, 2023
3 Mastercard Data Warehouse
4 Mastercard Data Warehouse

Andrea Denadai

Andrea.Denadai@mastercard.com

Source: Mastercard Incorporated

FAQ

What is Mastercard's (MA) plan for online payments by 2030?

Mastercard plans to eliminate manual card entry and passwords by 2030, replacing them with biometric authentication and tokenization for all online transactions.

How much additional revenue is Mastercard (MA) generating through tokenization?

Mastercard's tokenization technology is generating up to $2 billion in additional global sales monthly.

What percentage of Mastercard (MA) transactions are currently tokenized?

Over 30% of Mastercard transactions worldwide are currently tokenized, with some markets like India approaching 100% for e-commerce.

How is Mastercard (MA) addressing online fraud rates?

Mastercard is implementing tokenization and biometric authentication to reduce online fraud rates, which are currently seven times higher than in-store rates.

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