Mastercard Reinvents Checkout With Password and Number Free Payments
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 verification to make checkout seamless and secure. Currently, over 30% of Mastercard transactions worldwide are tokenized, with some markets like India approaching 100% for e-commerce. The initiative addresses key 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, improving transaction approvals by 3-6 percentage points and generating up to $2 billion in additional monthly global sales for merchants.
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 la verifica biometrica per rendere il processo di pagamento fluido e sicuro. Attualmente, oltre il 30% delle transazioni Mastercard a livello mondiale è tokenizzato, con alcuni mercati come l'India che si avvicinano al 100% per l'e-commerce. L'iniziativa affronta le principali sfide dello shopping online, inclusi tassi di frode sette volte più elevati online rispetto ai negozi fisici e problemi di abbandono del carrello, dove il 25% dei carrelli viene abbandonato a causa di processi di pagamento complessi. La tokenizzazione sta già mostrando risultati positivi, migliorando le approvazioni delle transazioni di 3-6 punti percentuali e generando fino a $2 miliardi di vendite globali mensili aggiuntive per i commercianti.
Mastercard ha anunciado planes para transformar las compras online para el 2030, con el objetivo de eliminar la entrada manual de tarjetas y contraseñas a favor de la autenticación biométrica. La compañía combinará la tokenización con la verificación biométrica para hacer que el proceso de pago sea fluido y seguro. Actualmente, más del 30% de las transacciones de Mastercard en todo el mundo están tokenizadas, con algunos mercados como la India acercándose al 100% en comercio electrónico. La iniciativa aborda los principales desafíos de las compras en línea, incluyendo tasas de fraude que son siete veces más altas en línea que en las tiendas, y problemas de abandono de carritos, donde el 25% de los carritos se abandona debido a procesos de pago complejos. La tokenización ya está mostrando resultados positivos, mejorando las aprobaciones de transacciones en 3-6 puntos porcentuales y generando hasta $2 mil millones en ventas globales adicionales mensuales para los comerciantes.
마스터카드는 2030년까지 온라인 쇼핑 혁신 계획을 발표하며, 수동 카드 입력 및 비밀번호를 없애고 생체 인증으로 전환할 예정입니다. 이 회사는 토큰화와 생체 확인을 결합하여 결제를 매끄럽고 안전하게 만들 것입니다. 현재 전세계 마스터카드 거래의 30% 이상이 토큰화되어 있으며, 인도와 같은 일부 시장은 전자 상거래에서 100%에 가까워지고 있습니다. 이번 이니셔티브는 온라인 쇼핑의 주요 문제점들을 해결하고 있으며, 온라인의 사기율이 매장보다 7배 더 높은 것과 복잡한 결제 과정으로 인해 25%의 장바구니가 방치되는 문제를 다룹니다. 토큰화는 이미 긍정적인 결과를 보여주고 있으며, 거래 승인율을 3-6 포인트 개선하고 상인에게 월 최대 20억 달러의 추가 글로벌 매출을 창출하고 있습니다.
Mastercard a annoncé des projets pour transformer le commerce 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 la vérification biométrique afin de rendre le processus d'achat fluide et sécurisé. Actuellement, plus de 30% des transactions Mastercard dans le monde sont tokenisées, certains marchés comme l'Inde s'approchant presque de 100% pour le commerce électronique. L'initiative répond à des défis clés du shopping en ligne, notamment 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 caisse complexes. La tokenisation montre déjà des résultats positifs, améliorant l'approbation des transactions de 3-6 points de pourcentage et générant jusqu'à 2 milliards de dollars de ventes mondiales supplémentaires par mois pour les commerçants.
Mastercard hat Pläne angekündigt, das Online-Shopping bis 2030 zu transformieren, mit dem Ziel, manuelle Karteneingaben und Passwörter zugunsten biometrischer Authentifizierung zu eliminieren. Das Unternehmen wird Tokenisierung mit biometrischer Verifizierung kombinieren, um den Checkout nahtlos und sicher zu gestalten. Derzeit sind über 30% der Mastercard-Transaktionen weltweit tokenisiert, wobei einige Märkte wie Indien nahezu 100% im E-Commerce erreichen. Die Initiative greift zentrale Herausforderungen beim Online-Shopping auf, darunter Betrugsraten, die online siebenmal höher sind als im Geschäft, sowie Probleme mit abgebrochenen Einkaufswagen, bei denen 25% der Einkaufswagen aufgrund komplexer Checkout-Prozesse abgebrochen werden. Die Tokenisierung zeigt bereits positive Ergebnisse, verbessert die Transaktionsgenehmigungen um 3-6 Prozentpunkte und generiert zusätzliche monatliche globale Verkäufe von bis zu 2 Milliarden Dollar für Händler.
- Tokenization improving transaction approvals by 3-6 percentage points
- Generating up to $2 billion in additional monthly global sales for merchants
- 30% of global transactions already tokenized, with India reaching nearly 100% for e-commerce
- Reduced fraud risk through enhanced security measures
- Partnership expansion with major banks and payment providers globally
- Current online fraud rates 7x higher than in-store transactions
- 25% cart abandonment rate due to complex checkout processes
Insights
This strategic shift towards biometric authentication and tokenization represents a significant transformation in payment processing. The initiative targets a 3-6% increase in transaction approvals and generates up to
The elimination of manual card entry and transition to biometric authentication could significantly reduce the
This initiative directly addresses the growing e-commerce fraud problem, where online fraud rates are 7x higher than in-store transactions. The shift to numberless cards and biometric authentication could significantly reduce fraud-related losses for merchants and issuers, improving bottom-line performance. The global rollout strategy, supported by partnerships with major banks and merchants, demonstrates strong ecosystem buy-in.
The partnership with established players like Commonwealth Bank, NatWest, Adyen and Just Eat Takeaway.com indicates robust institutional support. This transformation could strengthen Mastercard's market position and potentially increase transaction volumes by reducing friction in online payments, particularly in high-growth e-commerce markets.
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
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
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
“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.”
Core to this commitment to bring these new technologies together by 2030 is continued partnership and momentum across the payments ecosystem, as well as enablement via the Mastercard Gateway. Today, Mastercard is working with a range of players 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 likeIndia already nearing100% for e-commerce. -
The Mastercard Payment Passkey Service, which was first rolled out to millions of consumers in
India ,Singapore and theUnited Arab Emirates , continues to scale globally. Leading banks, payment aggregators and online merchants, including Axis Bank, BigBasket, Juspay, noon Payments, Lenskart, Razorpay, PayU and Tap Payments today are deploying the technology. - Click to Pay is rapidly expanding as issuers like Commonwealth Bank of Australia, ING Spain, NatWest, Santander Mexico, and more enroll their card portfolios. Acquirers, payment service providers and other channel partners including Adyen, Prestashop, Worldline and Yuno are also enabling this technology. And consumers are using Click to Pay to make everyday purchases at international merchants including Arcos Dorados, Just Eat Takeaway.com, Nando’s, and Pizza Hut.
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.
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.
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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
View source version on businesswire.com: https://www.businesswire.com/news/home/20241113707114/en/
Biz Cozine
Biz.Cozine@mastercard.com
Source: Mastercard Investor Relations
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