Mastercard announced its vision to transform online shopping by 2030, aiming to eliminate the need for manual card entry and passwords. This strategic shift will combine tokenization, introduced ten years ago, with biometric authentication for secure and seamless checkout experiences globally.
The company seeks to ensure that every online transaction across its network can be tokenized and authenticated, making online checkout smoother and safer. This initiative directly addresses the issue of online fraud, which is seven times higher than in-store fraud, and aims to reduce cart abandonment rates, currently at 25% due to complex checkouts.
Mastercard's existing tokenization technology is already reducing cart abandonment and increasing transaction approvals by 3-6 percentage points, generating up to $2 billion in additional global sales each month. This vision also paves the way for numberless physical cards, further reducing fraud risk if a card is lost or stolen.
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