We are accustomed to seeing credit and debit cards with their numbers embossed over them or at least mentioned on the hind side. What’s a payment card without its card number after all, right? Mastercard no longer thinks so. The payment industry behemoth is planning to roll out credit cards that won’t display any number over them but just have a high security chip. That’s a massive shift from the traditional 16-digit cards which may be phased out by Mastercard by 2030.
The primary motivation has been to reduce fraud and enhance user experience, using tokenization and biometric authentication for payments. Why so? It is because despite the security measures that credit card providers have taken to date, dark web still has sellers of credit card data openly promoting fraud. By eliminating the 16-digit credit card numbers, the value and sale of these stolen numbers on dark web will be rendered futile.
The plan is to convert the 16-digit credit card numbers into tokens, which will be stored on the customer’s device. For making a payment, a customer will have to simply rely on the tokens at the payment centre while tapping the card or making payment through phone. Moreover, since the lifespan of the tokens is short, even if the tokens are stolen and posted online or in dark web, their quick expiry will ensure that such data on tokens ends up being useless very soon. The tokens will be replaced by Mastercard on a regular basis, to ensure the security of cards. This will also save the hassle of entering card details on websites to make payments for retail and ecommerce purchases.
Customers will have to register their card with Click to Pay option using their banking application or use the Click to Pay option at the checkout, ensuring that sensitive credit or debit card details are never shared. This is also expected to amplify the adoption of tap-to-pay, mobile wallets and digital payment methods globally.
Though the concept has impressed people worldwide, some re concerned about the fact that digital payments are not ubiquitous, and some consumers may face hassles if they are ignorant about how tokens work. Furthermore, regions which lack smartphone penetration or good telecom infrastructure may also face hassles with numberless payment cards. Issues around the use of biometrics and storage of customers’ personal data also need to be addressed. Some experts also opine that the growth in mobile payments may eliminate the need for cards altogether.
Currently, the numberless card is planned to be rolled out in Australia as a pilot project, before expanding the market of the card. Mastercard has redefined the way we see credit cards and their security, and it needs to be seen how long it can offer enhanced security and service to customers in a data-driven security-sensitive world.
