Mastercard to Move from Credit Card Numbers to Tokenization and Biometric Authentication.

Mastercard to Move from Credit Card Numbers to Tokenization and Biometric Authentication.
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In a bid to simplify payments, Mastercard moves to tokenization and biometric authentication to eliminate the requirements for users to enter their credit card details during online purchases, regardless of platform or device.

The shift to tokenization and biometric authentication is designed to improve user security and convenience. The payment giant will replace human 16-digit card number entry with a randomly generated “token” to improve how people pay for online services. 

Valerie Nowak, Executive Vice President of Product and Innovation at Mastercard Europe, addressed CNBC,

“In Europe, we have seen tokenization gaining momentum across the ecosystem. The convenience and reduced rates of fraud sell themselves. We are confident that reaching this vision by 2030 is a win-win-win for shoppers, retailers, and card issuers alike.”

How Passkeys and Biometric Authentication Simplifies the Checkout Process

This program aims to simplify the checkout process and improve fraud protection. According to Mastercard, tokenization is fast expanding, safeguarding around 25% of all e-commerce transactions globally across its network.

Biometric authentication, such as thumbprint verification, will allow for one-click payments at checkout. This solution additionally guarantees that card information carried in merchant systems or electronic wallets is automatically updated when the cards are reissued or replaced.

A Game-Changer for E-commerce

The idea for 100% tokenization in e-commerce is designed to curb fraud. Mastercard believes that by implementing tokenization, it would be able to reduce losses and improve transaction security. 

Mastercard believes that this transition to tokenization will be quickly adopted just like chip and PIN or contactless payments. Users are going to be capable of carrying out secure payments using any device, including smartwatches, home assistants, just like in contactless payments.


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