Biometrics, tokenization to replace credit card numbers by 2030

Mastercard intends to do away with the 16-digit number on their credit and debit cards and replace them with on-device biometrics and tokenization as part of a plan to quash identity theft and fraud.

In Australia the initial rollout of these new numberless cards will be via a partnership with AMP Bank, but other banks are expected to follow over the next 12 months.

Mastercard recently committed to phasing out manual card entry and static passwords by 2030 in favor of tokenization and biometrics, and to replace traditional authentication methods with on-device biometrics for users to authenticate purchases without exposing personal data online.

In a piece for The Conversation, the authors observed that we could ultimately be heading towards the end of cards. It is a fact that hackers often target businesses such as travel or hospitality operators or online companies. For example, Ticketmaster was hacked in a major breach last year resulting in several hundred million customers’ personal details accessed illegally. This means credit card numbers, among other sensitive information, are leaked.

Removing the numbers prevents fraudsters from using your card when they don’t have the physical card, which is known as card-not-present transactions.

Ultimately, the removal of card numbers might pale against the removal of cards altogether. The Mastercard Biometric Checkout Program removes the need for retail customers to bring a physical card altogether, rely on biometrics more fully, with consumers paying for things just with their face, or palm payments, for example.

Llanfairpwllgwyngyllgogerychwyrndrobwllllantysiliogogogoch now a Click to Pay capital

Mastercard is teaming up with seven of Europe’s longest-named towns in a show of its latest convenience for online shoppers.

Europe’s longest-named town is Llanfairpwllgwyngyllgogerychwyrndrobwllllantysiliogogogoch, which is found in Wales. At 58 letters it’s a bit of a pain for residents to input when filling in credit card details online to pay for things.

This is where Mastercard is showcasing its Click to Pay, which the company says is a faster, simpler and more secure way to pay online. In a new study, 93 percent of Britons type out their full address and 95 percent their 16-digit card number when shopping online despite nearly half – 48 percent – finding it a hassle to do so. This problem is intensified when you live in Llanfairpwllgwyngyllgogerychwyrndrobwllllantysiliogogogoch.

Or if you live in the Netherlands’ Westerhaar-Vriezenveensewijk. Mastercard is making seven of these “sesquipedalian” towns across Europe a Mastercard Click to Pay Capital. The feature allows shoppers to pay with one click, without needing to share long card numbers.

“The secure process called ‘tokenisation’ replaces the card number with random numbers, or tokens, for each transaction, which are meaningless if stolen,” explained Simon Forbes, Division President, UK and Ireland, Mastercard. “This not only protects consumers from scammers but also protects retailers from cybersecurity and data breach threats.”

Payment passkeys allow online shoppers checking out to choose their Mastercard for Click to Pay, or a card already stored securely on file with a merchant, then confirm payments with biometric authentication through on-device fingerprint or facial scan.

It’s one solution to a real problem — more than 36 million (67 percent) of UK shoppers abandoned online shopping at the checkout last year due to security concerns, lack of payment options, or forgotten card details.

Consumers are able to register their card with Click to Pay on their banking app or to look for the Click to Pay icon at checkout. Mastercard also has a YouTube video outlining Click to Pay, which also explains the Payment Passkey service for Tap Payments.

Article Topics

biometric authentication  |  biometric payments  |  biometrics  |  ecommerce  |  Mastercard  |  Mastercard Biometric Checkout Program  |  payment passkey  |  retail biometrics