Mastercard announced plans to revamp online checkout procedures by 2030, aiming to eliminate manual card entry and passwords.
Citing concerns about online fraud, which occurs at seven times the rate of in-store fraud, Mastercard proposes a system that relies on tokenisation and biometric authentication, such as fingerprints and facial recognition.
This approach also seeks to address issues like cumbersome checkout processes, which currently lead to a 25% cart abandonment rate.
Mastercard’s research indicates that two-thirds of shoppers struggle with manually entering their card details online.
The payment giant’s proposed system would allow for seamless authentication across devices while keeping personal data secure and on-device.
The company highlights the success of tokenisation, which has already shown a 3-6% increase in transaction approvals and generated an estimated $2 billion in additional monthly sales for merchants.
In India, tokenisation adoption for e-commerce is nearing 100%.
To achieve this goal, Mastercard is collaborating with various stakeholders across the payments ecosystem, including banks like Commonwealth Bank of Australia, merchants like Just Eat Takeaway.com, and payment providers like Adyen and Worldline.
Initiatives like the Payment Passkey Service and Click to Pay are being rolled out globally with support from partners like Axis Bank and Razorpay.
Click to Pay is being adopted by issuers like ING Spain and used by consumers at merchants like Pizza Hut.
This shift towards biometric authentication builds on Mastercard’s previous efforts to enhance payment security, such as being the first payment network to phase out magnetic stripes in 2021.
“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 tokenisation technologies.
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.”
said Jorn Lambert, Chief Product Officer at Mastercard.
Featured image credit: Edited from Freepik
