As e-commerce continues to flourish across the UK and European markets, customer expectations for online checkout are evolving rapidly. Businesses are increasingly relying on card payments to manage supplier expenses and facilitate transactions. However, with this growth comes a significant challenge: payment fraud. Research indicates that merchant losses from online payment fraud are projected to exceed $91 billion by 2028. Alarmingly, a recent Mastercard® study revealed that 71% of consumers would cease doing business with a company following a fraudulent incident on its app or website.
To address these concerns, Mastercard is phasing out manual card entry for e-commerce transactions by 2030, transitioning to a streamlined one-click experience. This shift is driven by the dual need for enhanced fraud prevention and the demand for quicker, more convenient payment methods. At the heart of this innovation is the Mastercard Digital Enablement Service (MDES), a tokenisation service developed in 2013 that serves as the foundation for the new Click to Pay functionality.
This article covers the role of Mastercard Click to Pay as another tool to help combat the rising threat of online payment fraud.
What is Click to Pay?
Click to Pay is a smarter, more secure way to pay online, leveraging advanced payment technology and intelligent security measures from Mastercard. The process is straightforward: card details are digitally tokenised and linked to a Mastercard account on the user’s device. This means that cardholders can enjoy a seamless checkout experience without the hassle of entering passwords or manually inputting card information each time they make a purchase.
How does Click to Pay work?
The card is tokenised and securely stored on a server. Each token is unique and cannot be used by anyone else, providing an additional layer of security. If a cardholder wishes to use Click to Pay on a new device, they simply need to verify their identity through a one-time passcode (OTP) sent to their mobile phone. This ensures that only the rightful owner can access their payment information.
- Quick checkout - Cardholders can access their pre-saved cards on any device at any Click to Pay merchant, streamlining the payment process.
- Hassle-free payments — Intelligent recognition technology eliminates the need to enter payment details or passwords, making transactions faster and more convenient.
- Increased security — Tokenised and authenticated card details significantly reduce the risk of fraud, giving cardholders peace of mind.
The importance of Click to Pay
For fintechs and corporates, Click to Pay represents a significant opportunity to enhance product engagement. The convenience of this payment method encourages users to adopt card products more frequently. Additionally, Click to Pay future-proofs payment solutions by providing users with innovative, sustainable options that ensure a competitive edge in the market.
Click to Pay: Part of a broader shift to combat online payment fraud
The payments ecosystem has responded to the growing challenge of online payment fraud with a range of innovations - from 3D Secure, which supports compliance with Strong Customer Authentication (SCA) regulations, to digital wallets from Apple and Google that offer tokenised, device-based payments. Click to Pay is another step in this broader effort, providing a secure streamlined checkout experience designed to minimise fraud while enhancing convenience for both consumers and businesses.
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Are you interested in learning more about how you can make use of Mastercard Click to Pay within your product offering? Contact us today to explore how we can assist you in securing online payments for your users.
