A Major Step Toward Securing Digital Payments
Mastercard is accelerating its push into digital finance with a bold new vision: to tokenize 100% of all card transactions across the European Union by 2030. The move aims to strengthen payment security, reduce fraud, and lay the foundation for the next generation of seamless, digital-first experiences.
What Tokenization Means for Consumers
Tokenization replaces actual card details with unique, encrypted tokens during transactions. These tokens are useless to fraudsters, helping to prevent data breaches and unauthorized use. For consumers, this translates into safer purchases both online and in-store—without sacrificing speed or convenience.
Mastercard’s Current Progress
According to Mastercard, nearly 29% of its global transactions are already tokenized. This shift has led to measurable improvements: a reduction in fraud attempts by up to 3x and a boost in successful transaction approvals by more than 3%.
Targeting 100% Token Coverage in the EU
The company’s goal is to ensure that every EU card transaction is tokenized by 2030, whether through mobile wallets, contactless terminals, or online checkouts. Mastercard is working closely with issuing banks, retailers, and payment service providers to achieve this milestone.
Part of a Larger Digital Strategy
The tokenization effort aligns with Mastercard’s broader “Digital First” strategy, which emphasizes innovation in online banking, fintech integration, and digital identity verification. Tokenized credentials are being positioned as a foundation for secure embedded finance, open banking, and future-facing Web3 ecosystems.
Executive Perspective
Ajay Bhalla, President of Cyber & Intelligence at Mastercard, stated that tokenization will not only boost transaction security but also simplify the user experience and reduce reliance on static card data. He emphasized the company’s commitment to setting new standards for trust in digital payments.
A Glimpse Into the Future of Finance
With financial crimes growing more sophisticated, Mastercard’s move represents a proactive step to safeguard Europe’s digital economy. Should the company meet its 2030 target, EU residents may never have to expose their card numbers again—ushering in a more secure and efficient era for everyday transactions.
