Mastercard aims to end the use of credit card numbers in online shopping. With the new regulation to be implemented in Europe by 2030, a token system will be used instead of the 16-digit credit card numbers during transactions. This change will enable users to make payments faster and more securely. Mastercard will perform user authentication through randomly generated tokens in this system. This new system will also help prevent fraudulent activities.
Users’ Biometric Data to be Used for Encryption
The company plans to enhance the security of tokens by using users’ biometric data instead of passwords. Additionally, tokens will be automatically updated, thus quickly protecting users in any security breach. However, this system could also bring issues arising from cyber attacks. Particularly, the theft of biometric data could pose a more challenging situation compared to traditional credit card information.
Mastercard and its partners continue to work collaboratively with fintech companies, banks, and e-commerce platforms to integrate this new payment method. It is anticipated that the incidence of fraud in online payments will significantly decrease in the coming years thanks to this new system.
