MASTERCARD is currently in the process of phasing out the requirement for shoppers in the region to enter their 16-digit card number when checking out online, replacing it instead with randomly generated numbers on a token in an effort to tamp down on the rising incidents of online fraud. The process called ‘tokenisation’ is often backed by biometric authentication.

Mastercard has rolled out the feature in other markets globally, and in the region. Since August, country manager for Jamaica, Trinidad and Tobago, Barbados, and the Eastern Caribbean Dalton Fowles said ‘about 13 per cent’ of online transactions using its payment system have been tokenised, with countries such as Jamaica, Puerto Rico, and Cayman Islands leading in the area.

“Mastercard’s move towards tokenisation is a positive step towards a more secure and convenient digital payment ecosystem. This technology will undoubtedly benefit all markets, including the Caribbean, by mitigating cybersecurity risks and fostering trust in the digital economy,” Fowles said in response to Jamaica Observer queries regarding the payment security feature.

Amidst growing levels of online payment fraud, which is expected to exceed US$91 billion by 2028, Mastercard, in its push to secure cardholder information, said it is aggressively moving to tokenise a vast majority of their e-commerce transactions by 2030.

In its road map to increase tokenisation in the Caribbean, Fowles said, more digital wallets are likely to be launched, especially as the global company increases digital acceptance and enables more domestic merchants.

Tokenisation, which enhances the contactless payment experience, the regional country manager pointed out, adds “that extra layer of security” while encouraging wider adoption and support for the Caribbean’s push towards a cashless society.

“The region’s rapid adoption of digital transactions, particularly contactless payments, requires robust security measures like tokenisation to protect sensitive data. Mastercard’s commitment to security in the Caribbean is evident in its development of solutions like RiskRecon which analyses risks in digital platforms, monitors a company’s internet presence, assess risks in the ecosystem while also providing continuous monitoring of third parties and their supply chain,” Fowles added, while sharing his belief that tokenisation will be readily adopted by citizens locally.

“The Caribbean region is already on a rapid path towards digitalisation, driven by factors like high smartphone penetration, the rise of e-commerce, and a growing need for secure and convenient payment options,” he further stated as he referred to a Mastercard 2023-2024 Consumer Payments Behaviour Report which shows approximately 93 per cent of Jamaicans being comfortable with trying new technology.

The report, which also shows another 93 per cent of locals regarding security as important or very important when making payments, likewise showed 71 per cent of respondents opting for the most secure payment methods available.

Mastercard, in building out what it describes as “more user-friendly solutions that caters to the evolving needs of its Caribbean customers”, said that by forging trust and demonstrating the value of these technologies, it is confident that tokenisation will be “embraced as a positive step towards a more secure and convenient digital future for all”.

“We understand that new technologies can raise questions about security, but customer safety is paramount to Mastercard. For over 50 years, cybersecurity has been fundamental to our network, and new technologies like tokenisation are built with multiple layers of protection. We know security is a top priority for Jamaicans, and tokenisation directly addresses this by removing sensitive card data from transactions, making it useless to fraudsters,” he said.

Leveraging the use of artificial intelligence, the payments company said it will continue to stay ahead of threats, proactively utilising all available measures to identify and neutralise risks before they impact consumers.

“We also believe in empowering consumers with information and tools like two-factor authentication and clear explanations of our security measures. At Mastercard we provide a secure and convenient digital payment experience. We are constantly innovating but never at the expense of the trust our customers place in us,” Fowles stated.