E-commerce around the world continues to grow rapidly, and the level of online fraud remains seven times higher than that in offline stores, as criminals exploit open card numbers.
Moreover, according to a Mastercard study, nearly two-thirds of shoppers still attempt to manually enter their card details, and 25% of shopping carts are abandoned because the checkout process is too complicated or slow.
Tokenization, introduced by Visa and Mastercard back in 2014, replaces the 16-19 digit number on a payment card with a secure token, which reduces fraud levels and enhances payment approval rates. This technology also increases transaction approval rates by 3-6 percentage points across various regions, generating up to $2 billion in additional global sales for merchants each month.