Many of us are used to entering long card numbers, expiration dates, and security codes during online shopping. But this will soon be a thing of the past. Mastercard is actively implementing large-scale changes to completely eliminate manual entry of payment card data in Europe by 2030. These innovations have already affected Slovakia.
What is tokenization and how does it work?
The basis of these changes is tokenization. Instead of the real 16-digit card number during payment, a digital token is used. This token can be linked to a specific device, merchant, or payment service. If attackers get access to such a token, they cannot use it the same way as full data from a regular card. This greatly increases the security of your online transactions.
Mastercard states that their Secure Card on File solution already works in 45 European countries, and the Click to Pay service, which allows paying for purchases without re-entering data, is available in 32 European markets.
Biometrics and payment passkey: the future of payments
The result of these changes for the customer will be as simple as possible. During online shopping, you just select the saved card and confirm the transaction. Instead of entering data and searching for a one-time code, biometrics or the so-called payment passkey — fingerprint or face recognition on your device — will be used more often.
These technologies not only speed up the payment process but also help reduce fraud risks and increase the success rate of transactions for merchants.
Progress in Europe and Slovakia
Mastercard first presented this plan in 2024, and since then it has been actively implemented. Currently, about three out of five Mastercard online transactions in Europe are already tokenized. The company claims that 60% of its online transactions on the continent already work with tokens instead of classic card data.
This advantage is evident not only during payment itself. The tokenized system can automatically update payment data for the merchant, even if the bank updated or replaced the customer's card. Thus, you do not need to manually change card data in all services where it is saved after each replacement.
Even in Slovakia, changes are already noticeable. Tatra banka actively participates in expanding tokenization and Click to Pay. This allows Tatra banka customers to use services like Click to Pay, Apple Pay, and Google Pay for fast and secure online payments.
Plastic cards remain, but their role changes
It is important to note that Mastercard's goal is not the complete cancellation of physical payment cards. The goal by 2030 mainly concerns the method of payment on the internet. Your plastic card may remain in your wallet for a very long time, but the number printed on it will become less and less important. Payments are gradually moving to mobile phones, watches, and digital wallets, where a transaction can be confirmed as easily as unlocking a phone.
The main argument for Mastercard, besides convenience, is security. Although strong customer authentication greatly helps limit card fraud, attackers constantly look for new methods. The fewer places use the real payment card number, the less value its possible theft will have.
