Mastercard is on track to phase out passwords by 2028 and will also eliminate the use of card numbers and one-time codes by 2030. Instead, the company plans to shift toward more secure methods, such as tokenization and biometric authentication, to protect user information from cyber threats.
As online shopping continues to grow, there has been a corresponding surge in e-commerce transactions—and, unfortunately, a significant increase in fraud. Exposed card details, including numbers, CVVs, and the last four digits, have become prime targets for cybercriminals, causing significant financial losses for both cardholders and e-commerce merchants.
A recent study by the International Banking Institute revealed that Mastercard accounts for nearly 40% of global online transactions, with its rival Visa not far behind. To address the growing issue of online fraud, both Mastercard and Visa have been integrating advanced security measures like tokenization since 2014. Tokenization replaces the traditional 16-digit card number with a unique, encrypted token, preventing fraud and improving transaction approval rates.
Looking ahead, Mastercard plans to eliminate the use of passwords and one-time passcodes altogether by the end of the decade. This will pave the way for the mandatory use of passkeys for authentication. The company has already rolled out this technology in markets like Singapore, the UAE, and India. The future of secure payments will rely heavily on biometric verification, including facial recognition, fingerprint scanning, and iris scans, which will further block fraudsters from accessing sensitive financial data.
In addition to these security enhancements, Mastercard is also bidding farewell to physical card numbers. The company plans to enhance its Click to Pay service, which allows users to securely load their card information onto their mobile devices. With this service, users will be able to make payments effortlessly by simply tapping their smartphone on a payment terminal or swiping the home screen of their device—removing the need for physical cards altogether.
With these innovations, Mastercard is striving to provide a smoother, more secure payment experience for consumers, while also protecting them from the rising tide of digital fraud.
