Online payment principle changed by Mastercard
Source: Clay Banks, Unsplash
Mastercard has announced that by 2030 it will eliminate the manual entry of card numbers for online purchases across all platforms and devices. Instead of the usual 16-digit card number, a randomly generated "token" will be used.
The company says the move will ensure that cards are well protected against fraud. Users will not have to enter passwords every time they make a payment, as Mastercard is introducing a system of "access keys" to replace passwords. In addition, customers will be able to make one-time payments with biometric authentication using their fingerprint. And cards stored on merchant sites or in e-wallets via tokenization will be automatically updated when they are replaced or renewed.
Mastercard claims that 100% tokenization on e-commerce sites will significantly reduce fraud. According to Juniper Research, online fraud losses will exceed $91 billion by 2028, with total losses worldwide exceeding $362 billion over the next five years.
The company hopes that the transition to the new system will be as revolutionary as the move to chip-enabled plastic cards and then contactless payments.
