Mastercard tokenized 20-30% of transactions from '24
If you have been in Crypto for any length of time at this point you know that both Mastercard and Visa pivoted to support Crypto years ago.
Now Mastercard has tokenized 30% of their transactions from 2024 per an SEC filing. This effort took place through Mastercard's Digital Enablement Service (MDES). They took this step to stay ahead of the competition from the payment industry most notably stablecoins. The behemoth to not ignore is still the rising trend of global governments pushing CBDCs. Don't overlook Mastercard's acquisition of CipherTrace back in 2021 which has helped them fight Cyber crime in the financial payment arena.
So what is involved in tokenization?
Mastercard is assigning 'tokens' to each card and removing the 16-digit number on replacement cards. The goal is for a more secure method of payment while decreasing fraudulent activities.
Mastercard's next goal is 100% Tokenization by 2030
Fighting fraud helps both sides of every transaction hopefully, the cost savings will be passed onto consumers and potentially easing inflations burdens as well.
Catchup by reading my other Credit Card associated Crypto blogs:
- Metamask released Debit card w/ Mastercard
- Visa - Money is evolving
- Mastercard and Mass Crypto Adoption
- CipherTrace acquired by MasterCard
- Love Apple Pay? Now BitPay will support it
- Mastercard not being left behind Visa
- Visa and Crypto a long standing partnership
Summary
Global citizens are taking crypto seriously and attempting to upend the two payment giants. Nothing wrong with a little healthy competition nor tokenizing transactions for better security for all parties involved!
