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AMSTERDAM - Mastercard (NYSE: MA), a financial services giant with a market capitalization of nearly $528 billion and an impressive "GREAT" financial health rating according to InvestingPro, has reported significant progress in its initiative to enhance digital payment security in Europe, with nearly half of its e-commerce transactions in the region now being tokenised. This comes one year after the company announced its ambition to eliminate manual card entry and achieve full tokenisation by 2030.
Tokenisation, which involves replacing sensitive card information with unique digital identifiers, has seen a surge in adoption, increasing by over a third in the past year. This innovation contributes to Mastercard’s robust revenue growth of 13.12% over the last twelve months. Mastercard’s Secure Card on File (SCOF) system is now operational in 45 European countries, aiming to reduce fraud and boost transaction approval rates. Click to Pay, a streamlined checkout solution, has expanded to 26 European markets with enrolments more than doubling over the past year.
In addition to these developments, Mastercard is also pioneering payment passkeys, which offer a new form of digital authentication through biometric verification, such as fingerprints or facial recognition, thus eliminating the need for passwords.
Several new partners have joined Mastercard’s network over the past 12 months to support the adoption of secure and seamless digital checkout solutions. These partners include Checkout.com, Delivery Hero, Global Collect (Worldline), Monext, Santander for tokenisation; Autopay, Consors Finanz BNP Paribas, Fiserv, ICA Banken, Lendable, Nickel, N26, Ogone (Worldline), PayU, SaferPay (Worldline), SIX, and tPay for Click to Pay; and Dintero, Netopia, Solidgate for payment passkeys.
Brice van de Walle, Executive Vice President of Core Payments Europe at Mastercard, expressed the company’s commitment to working with partners to make digital payments more secure and user-friendly through these technologies.
Mastercard’s research indicates that a majority of Europeans experience frustration with account creation and complex checkout processes. By implementing tokenisation and passkeys, Mastercard aims to alleviate these issues, providing a safer and more convenient payment experience.
Global Head of Cards and Digital Solutions at Santander, Matias Sanchez, highlighted the benefits of tokenisation in protecting card details and simplifying the checkout process. Meanwhile, Marius Costin, CEO of NETOPIA Payments, praised the integration of payment passkeys with Click to Pay as a move towards a more secure and streamlined digital payment environment.
The company plans to continue expanding access, raising consumer awareness, and encouraging wider adoption of these payment solutions as it progresses towards its 2030 goal. Currently trading near its 52-week high, Mastercard’s stock appears to be trading at a premium to its Fair Value, according to InvestingPro analysis, which offers 11 additional valuable insights about the company’s performance and prospects. For deeper analysis, investors can access Mastercard’s comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks. This news is based on a press release statement from Mastercard Incorporated (NYSE: MA).
In other recent news, Mastercard reported strong financial results for the first quarter of 2025, with earnings per share (EPS) reaching $3.73, surpassing Wall Street’s forecast of $3.57. The company’s revenue also exceeded expectations, coming in at $7.3 billion compared to the anticipated $7.13 billion, marking a 17% year-over-year increase in net revenues. This performance was bolstered by a 15% growth in cross-border volumes, highlighting recovery in international travel, notably in China. Jefferies analyst Surinder Thind revised Mastercard’s stock price target to $630 from $660, maintaining a Buy rating, citing robust consumer spending despite slowing cross-border travel. Thind noted that Mastercard’s organic foreign exchange-neutral growth continues to outpace Visa’s by a 5 percentage point spread. Additionally, TD Cowen analysts highlighted a sector-wide rally in the fintech and payments industry, spurred by easing tariff concerns and a major transaction between FIS and Global Payments. The report also emphasized the importance of macroeconomic indicators like consumer spending and inflation in assessing fiscal year 2025 guidance. These developments underscore Mastercard’s resilience and strategic positioning amidst a dynamic economic landscape.
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