Mastercard has announced plans to revamp its online checkout process by 2030, aiming to eliminate manual card entry and passwords.
Citing concerns about online fraud, which occurs seven times more often than in-store fraud, master card propose a system that relies on tokenization and biometric authentication such as fingerprints or facial recognition.
This approach also aims to address issues such as cumbersome checkout processes, which currently lead to a 25% cart abandonment rate.
A Mastercard study found that two-thirds of shoppers struggle to manually enter their card details online.
The payments giant’s proposed system enables seamless authentication across devices while keeping personal data safe on-device.
The company touts its success with tokenization, which has already increased transaction approvals by 3-6% and increased merchant monthly sales by an estimated $2 billion.
In India, the adoption rate of tokenization in e-commerce is approaching 100%.
To achieve this goal, Mastercard works with various stakeholders across the payments ecosystem, including banks such as the Commonwealth Bank of Australia, merchants such as Just Eat Takeaway.com, and payment providers such as Adyen and Worldline. We are cooperating.
Initiatives such as the Payment Passkey service and Click to Pay are being rolled out around the world with support from partners such as Axis Bank and Razorpay.
Click to Pay has been adopted by publishers such as ING Spain and used by consumers at retailers such as Pizza Hut.
This move to biometrics builds on Mastercard’s previous efforts to strengthen payment security, including becoming the first payment network to phase out magnetic stripes in 2021.
“Similar to the move from signatures and swipes to card taps, we are now moving from manual entry and passwords to seamless, secure payments in just a few clicks. We protect sensitive data through advanced encryption and tokenization technology.
As payments continue to be integrated into various commerce experiences, we are leading the way to a global economy that empowers everyone, providing consumers with greater control, convenience, and peace of mind, while supporting our membership. Drive new sales to your store and reduce fraud. For the publisher. ”
said Jorn Lambert, Chief Product Officer at Mastercard.
Featured image credit: Edited from freepic
