Mastercard plans to eliminate the need for European consumers to manually enter card numbers when making online purchases by 2030.
Introduce coding technology, but not the kind you want
Instead of the familiar 16-digit card number, Mastercard will use a randomly generated "token". This codification process is designed to improve security and simplify the checkout process. Mastercard has been working with banks, fintech companies, merchants and other partners to enable seamless one-click payment buttons across all online platforms.
In fact, this is a system that has been discussed for a long time. As early as 2016, Taiwan Finance Company wrote an article explaining that the basic idea of "code payment" is to virtualize the card number so that the real card number will not be displayed during the transaction process in physical or online stores to improve the security of the payment process.
Mastercard claims that this shift to coding will significantly improve the security of consumer cards against fraud. Mastercard has also introduced a customs clearance key that replaces traditional passwords and enables one-click payment through biometric technologies such as fingerprints. Users no longer need to enter passwords repeatedly, simplifying the payment process.
One of the great advantages of coding is that cards stored on merchant pages or e-wallets can be automatically updated when replaced or renewed, ensuring that payment information remains up-to-date without manual intervention by the user.
Coding technology reduces fraud rates
Mastercard believes that achieving 100% coding on e-commerce sites will significantly reduce fraud rates. Mastercard reports that coding adoption is growing at 50% annually and that approximately 25% of global e-commerce transactions are now protected on its network.
Europe will lead the way
The rollout of the new system will begin in Europe, a region that has been at the forefront of payments innovation such as contactless payments and online banking. Valerie Nowak, executive vice president of product and innovation at Mastercard Europe, said: "In Europe, we have seen codeization gain momentum across the ecosystem. Convenience and reduced fraud rates are the biggest selling points in themselves. We are confident that by 2030 Realizing this vision years ago will be a win-win for consumers, retailers and card issuers.”
This article is about coding! Mastercard plans to cancel “manual entry of card numbers” for online payments in Europe by 2030. First appeared on Chain News ABMedia.
