Physical cards can become completely unnecessary for online purchases

Physical cards can become completely unnecessary for online purchases

When you shop online, you often need to key in your physical location card’s 16-digit number series to go through with the purchase. In other cases, you can shop via services such as Klarna, which themselves store the number series for you.

However, this may disappear, as Market was the first to report. At least if Mastercard is to be believed.

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The 16-digit code on the card may become completely unnecessary

– The ambition is to replace all card numbers with tokens – or dummy card numbers – by 2030, says Peter Olbinghead of retail & commerce, Nordics & Baltic Division at MasterCard, to the newspaper.

These tokens will be used for online purchases instead of the 16-digit code. Unlike the code on the card, these tokens will be unique for each purchase. In this way, sensitive information that can be linked directly to the user’s payment card is not stored.

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Provides better protection against data breaches

Allowing services such as Klarna to store one’s card details always involves a certain risk. With unique tokens, card details never need to be disclosed directly to the website from which the customer purchases.

In the event of a data breach, the hacker would only get hold of the numbers contained in the tokens, and not on the card. A card will thus represent several different tokens.

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“The dealer doesn’t have to be as concerned anymore”

According to Olbing, this will make the trading process online. For example, you don’t have to get up and collect the plastic card if you shop online.

– The merchant does not have to be as concerned anymore when it comes to handling and storing real cards, he tells Market.

The customer will pay via BankID as before.

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Olbing believes that consumers will be positive about this change, if it is implemented.

– It’s not something we solve in a week. The consumer must be educated, and setting new solutions and behaviors can take time. But when everyone understands that the experience of an e-commerce payment is so much better when you don’t have to take out the physical card, things can happen quickly. I think people are open to things that make life significantly easier, says Olbing Market.

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