The Pay It Forward podcast is back and this time we’re joined by Mastercard Head of Digital, Christophe Zehnacker, who reveals how they’re enhancing the online checkout experience.
There are a number of exciting technologies that Mastercard are bringing to market, all in service of streamlining the customer experience. Christophe highlights technologies like Mastercard Click to Pay, which is being used in more and more jurisdictions, and the role network tokenization plays in this. It’s a technology we’re going to be hearing more and more about.
This approach mirrors the simplicity and security that contactless payments offer in the physical world. It’s also about keeping customer data secure online. Click to Pay, for example, allows consumers to store their cards in a digital wallet, facilitating a seamless checkout process authenticated by biometric technology called Passkey. This system not only reduces the likelihood of cart abandonment, where rates are as much as 70%, but also enhances overall transaction security.
One of the significant benefits highlighted by Christophe is the reduction in checkout times and the increase in transaction security. By using tokenization, merchants can ensure that payment credentials are secure, minimizing the risk of fraud. This is particularly beneficial for the guest checkout experience, where consumers can enjoy a swift, one-click payment process without needing to manually enter card details.
The alternative payment method explosion
We also get some thoughts on the rise of alternative payment methods (APMs) and their impact on the payments landscape. Christophe predicted that 2024 would be a year of increased consumer choice in payment methods. Mastercard is partnering with local APMs across Europe to integrate their systems and provide consumers with the flexibility of their preferred method and the security of a global giant like Mastercard.
For instance, in Poland, Mastercard has partnered with the account-based system Blik to extend its functionality to contactless payments using tokenization. Such collaborations enable local payment methods to become more secure and expand their reach both domestically and internationally.
Finally, Christophe discussed how Mastercard is tackling fraud in the digital space. The company aims to achieve 100% tokenization and seamless authentication for all online transactions, using biometrics to ensure secure and effortless two-factor authentication. By employing tokens that are context-specific and leveraging advanced biometric technology, Mastercard is working to make online payments as safe, if not safer, than physical transactions.
This conversation really is an insight into the present and future of seamless online payments and you can get clued up on all the latest developments from the payment services giant.
The post Tokenization is the Future of Online Payments | Pay It Forward With Mastercard appeared first on Fintech Finance.
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