Mastercard reported that 30% of its transactions were tokenized in 2024. In a filing with the U.S. Securities and Exchange Commission (SEC), the firm stated that it has made significant progress toward achieving its goal of an "innovative payment ecosystem," including transaction tokenization, creating solutions to unlock blockchain-based business models, and simplifying access to digital assets.
Mastercard also reported a net income of $28.2 billion for 2024, a 12% increase from the previous year.
Mastercard recognizes that stablecoins and other crypto are emerging as competitors in the payments industry. The firm stated that digital currencies have the potential to disrupt traditional financial markets and may challenge its existing products.
Because of their accessibility, immutability and efficiency, stablecoins and crypto may become more popular as they are regulated.
Mastercard is planning to tokenize all online transactions by 2030, which the company believes will eliminate the need for physical card numbers, passwords, and one-time codes for online purchases.
Currently, over 30% of Mastercard transactions are tokenized through the Mastercard Digital Enablement Service. Mastercard's push for tokenization is motivated by high fraud rates for online transactions, which are seven times higher than in-store purchases.
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