Mastercard, PayPal Boost Digital Checkout with Tokenization Drive Across Europe

Central to the initiative is Mastercard’s newly introduced “One Credential” — a single, unified digital identity that lets users manage multiple payment preferences without juggling different cards or methods.

The partnership announcement comes as Mastercard marks one year since launching its bold vision to eliminate manual card entry and achieve 100% tokenization across e-commerce by 2030. The payments giant reports that nearly half of all its online transactions in Europe are now tokenized—a 33% year-over-year increase.

Merchant-specific tokenization, known as Secure Card on File (SCOF), is now active in 45 European countries and territories. This shift has significantly boosted transaction approval rates while reducing fraud by replacing static card details with dynamic, encrypted tokens.

🚨 BREAKING: Nearly 50% of Mastercard’s online transactions in 🇪🇺Europe are now tokenized. #RWA adoption is speeding up 🚀 pic.twitter.com/mQ375wFfug

— Real World Asset Watchlist (@RWAwatchlist_) June 4, 2025

Meanwhile, Mastercard’s Click to Pay solution has expanded into 26 European markets, with user enrollments more than doubling in the past year. The tool streamlines repeat purchases by enabling shoppers to check out quickly without re-entering their payment information.

Adding to the momentum is Mastercard’s push for passwordless authentication through payment passkeys that use biometric verification like fingerprints and facial recognition. Notable partners adopting this technology include Dintero, Netopia, and Solidgate. In the past year, new partners such as Checkout.com, Delivery Hero, Santander, and N26 have joined to enhance secure and user-friendly digital payment systems.

According to Mastercard, 82% of Europeans find current checkout processes frustrating, while more than half dislike being required to create new accounts at checkout. Through tokenization, passkeys, and tools like Click to Pay, Mastercard aims to remove that friction and move closer to a fully secure, seamless digital payment ecosystem by 2030.

In another development, Mastercard is taking a significant step toward mainstream crypto adoption , announcing a new initiative that will enable over 150 million merchants on its global network to accept payments in stablecoins. The move is part of a broader partnership with payments processor Nuvei and stablecoin issuers Circle and Paxos.

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