Mastercard Embraces Tokenization for Enhanced Online Payment Security in Europe

Mastercard Embraces Tokenization for Enhanced Online Payment Security in Europe

Sofia Delgado
2 min read

Mastercard Embraces Tokenization for Enhanced Online Payment Security in Europe

Mastercard unveiled its plan to phase out manual card entry for online payments in Europe by 2030 and replace it with tokenization to bolster security. This innovative system will utilize randomly-generated tokens in place of traditional card numbers, with the aim of substantially reducing online payment fraud, which is anticipated to soar to $91 billion by 2028. The initiative also encompasses the incorporation of passkeys and biometric authentication, creating online transactions as seamless as contactless in-store payments. The company is collaborating with various partners to deploy a one-click payment button across all online platforms, heightening convenience and security for shoppers, retailers, and card issuers. This strategic move is poised to revolutionize online payments, making them as secure and effortless as current in-store contactless methods.

Key Takeaways

  • Mastercard intends to eliminate manual card entry for online payments in Europe by 2030, opting for tokenization to fortify security.
  • Tokenization seeks to significantly mitigate online payment fraud, forecasted to exceed $91 billion by 2028.
  • Mastercard's plan includes the integration of passkeys and biometric authentication, streamlining online payments to a one-click process.
  • Presently, tokenization secures approximately 25% of global e-commerce transactions and is experiencing a 50% annual growth rate.
  • Mastercard's endeavor is expected to render online payments as seamless as in-store contactless payments, benefitting shoppers, retailers, and card issuers.


Mastercard's pivot to tokenization for online payments in Europe endeavors to combat the escalating wave of online fraud, projected to reach $91 billion by 2028. This transformation, incorporating passkeys and biometric authentication, aims to simplify transactions to a one-click procedure, mirroring the simplicity of contactless in-store payments. The adoption of tokenization, already safeguarding a quarter of global e-commerce, is poised to proliferate, enhancing security and convenience for consumers, retailers, and card issuers. This strategic shift could set a new benchmark for online payment security, influencing other regions and payment platforms to emulate.

Did You Know?

  • Tokenization in Payment Systems: Tokenization replaces sensitive data, such as credit card numbers, with non-sensitive equivalents known as tokens. These tokens possess no exploitable meaning or value and are ineffectual if intercepted by cybercriminals, significantly enhancing security by preventing the direct exposure of critical information during transactions.
  • Biometric Authentication: This pertains to the utilization of unique biological characteristics, like fingerprints, facial recognition, or iris scans, to verify a user's identity. Within the context of online payments, biometric authentication offers a high level of security and convenience, negating the necessity to remember passwords or PINs and being exceedingly arduous to counterfeit.
  • Passkeys: Passkeys serve as a robust form of authentication, typically involving a physical device or a software token that generates a singular, one-time code essential in addition to a password to access an account or execute a transaction. These passkeys provide an additional layer of security, ensuring that even if a password is compromised, access remains safeguarded without the passkey.

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