Why you will soon no longer be able to pay with your bank card on the internet

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According to the Federation of e-commerce and distance selling (Fevad), 84% of consumers use their bank cards to make purchases on the Internet. This method, although anchored in our habits, has drawbacks in terms of both practicality and security. Mastercard is therefore considering putting an end to it.

The current online card payment process is far from optimal. It requires manually entering a series of data: the 16-digit card number, its expiration date and the visual cryptogram. This procedure, repeated for each transaction, can be tedious and time-consuming for consumers.

Beyond the practical aspect, it is above all the question of security that is pushing market players to rethink the system. Indeed, each time a user enters their card information on a website, they potentially expose themselves to the risk of hacking. Data can be intercepted during transmission or directly on the servers of online merchants, which are sometimes insufficiently secure.

In the event of fraud, the only solution for the consumer is to object and request a new card, an often costly and time-consuming process.

Mastercard to end online card payments by 2030

Faced with these challenges, the payment industry is turning to innovative solutions. Mastercard, one of the world's leading bank card networks, recently announced its intention to completely eliminate online payment by physical card by 2030.

To replace the current system, Mastercard is relying on tokenization technology. This approach consists of replacing the actual card number with a unique or limited-time digital token.This “token” can be used to make payments without ever exposing the user's real bank details. Some banks already offer this service under the name “virtual card”, but Mastercard aims to generalize it to its entire network.

At the same time, a new standard called “Click to Pay” is being rolled out. Developed by EMVco, a consortium of the main players in electronic payment, this system works like an electronic wallet. It allows the user to select their virtual card with a single click during payment, automatically generating a secure digital token for the transaction.

These innovations aim to simplify the online payment process while significantly strengthening transaction security. For consumers, this means the end of tedious manual data entry and a significant reduction in the risk of fraud. For merchants, these new technologies promise a reduction in shopping cart abandonment and better protection against non-payment.

Who is Apple Pay and the like ?

Of course, this transition will not happen overnight. The deployment of these new technologies will require a gradual adaptation of the entire e-commerce ecosystem. Merchant sites will have to update their payment systems, while consumers will have to familiarize themselves with these new methods.

This development also raises questions about the place of payment intermediaries such as PayPal or Apple Pay. These players, who have built their success on simplifying and securing online payments, could see their competitive advantage erode in the face of these new solutions offered directly by bank card networks.

• Mastercard plans to eliminate online payment by physical card by 2030 for reasons of security and convenience.
• New technologies such as tokenization and “Click to Pay&#8221 will replace the current system
• This change raises questions about the usefulness of Apple Pay and the like

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