Mastercard Incorporated has marked a significant milestone in its plan to eliminate manual card entry for online payments across Europe.
On June 3, 2025, the company announced that nearly half of all its online transactions in Europe now use tokenisation. This effort began a year ago to reach 100% tokenised transactions by 2030.
By replacing visible card numbers with secure tokens, consumers avoid exposing sensitive account details. This approach helps prevent fraud and supports a safer online shopping experience.
Progress on Tokenisation
Over the past twelve months, Mastercard has pursued a strategy to shift online payments away from manual card entry.
As of the June 3 announcement, one out of every two online transactions in Europe was tokenised. This represents a one-third increase in tokenised payments compared to last year.
Tokenisation combines methods such as Secure Card on File (SCOF), Click to Pay, and digital wallets.
Each method replaces static card information with encrypted tokens unique to specific merchants or platforms.
Expansion of Digital Payment Options
Click to Pay is now available in twenty-six European markets, and enrollments have more than doubled over the past year. Meanwhile, SCOF has gone live in forty-five countries and territories.
These rollouts demonstrate the growing acceptance of simpler payment methods. Mastercard has also started introducing passkeys, which let users authenticate payments via biometrics like facial recognition instead of typing passwords.
This move reduces the need for traditional login credentials and further cuts down on checkout friction.
Merchant Tokenisation and Security
A key driver of tokenisation growth is merchant tokenisation, commonly known as SCOF. With SCOF, merchants replace static card numbers stored on their systems with dynamic tokens that only work for that merchant.
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This process lowers the risk of data breaches and reduces fraud-related losses for businesses. By using dynamic tokens, approval rates tend to improve because the system can better verify transaction legitimacy. This helps merchants and shoppers alike by reducing declined transactions and the hassle of payment errors.
Benefits to Shoppers and Merchants
Tokenisation offers clear advantages for both sides of the transaction. Shoppers benefit from enhanced security and a smoother checkout flow.
Mastercard’s own research found that 82% of users feel annoyed by complicated online payment steps, and more than half dislike creating accounts just to check out.
Tokenised methods ease these pain points by streamlining the payment process. On the merchant side, lower fraud rates and higher approval rates mean fewer lost sales and reduced chargeback costs.
Impact on Mastercard’s Future
Mastercard’s push toward tokenised transactions is more than a security upgrade. It positions the company to capture higher transaction volumes over time, which can translate into increased revenue from processing fees.
As more e-commerce marketplaces, food delivery services, and financial institutions embrace tokenisation, Mastercard stands to benefit from a stronger foothold in the digital payments space.
Additionally, the company has partnered with MoonPay to launch stablecoin-powered cards, allowing users to send and receive payments globally in stablecoins.
Mastercard’s progress in Europe shows how fast digital payments are evolving. By driving tokenisation, expanding payment options with Click to Pay and passkeys, and strengthening merchant security through SCOF, the company is set to reshape online commerce.
Also Read: Mastercard Tokenizes 30% Of Transactions In 2024, Expands Crypto Initiatives