TOKENISATION TAKES OVER Thomas B. Normann , CPO & head of express issuance at MeaWallet , on why institutions must treat tokens as core infrastructure, not an add-on
For decades the 16-digit card number powered payments through the age of plastic. But the legacy primary account number (PAN) system wasn’t built for mobile apps, subscription billing, or embedded finance. That reality is creating a new digital landscape, with tokenisation fast becoming the common language of payments. Mastercard’s move to phase out visible card numbers by 2030 is a clear signal of where the industry is headed. This mandatory shift to network tokenisation, alongside tighter fraud regulations like
PSD3 in Europe and new reimbursement rules, means the question is no longer if but when. For issuers, the message is clear: tokenisation must be treated as core infrastructure, not an optional add-on. Card networks have already demonstrated its impact. Visa Token Service underpins billions of transactions worldwide, delivering up to a 50 per cent reduction in fraud and a five per cent increase in approval rates. And a recent Juniper Research study projects that tokenised transactions will more than double globally by 2029. As this adoption accelerates, tokens and their underlying
security design will quietly replace the PAN in everyday transactions – whether it’s morning coffees or monthly streaming subscriptions. This shift isn’t merely about compliance; it’s about competitive advantage. Tokenisation, with its embedded security mechanisms such as domain restriction and cryptograms, unlocks a new paradigm for payments, enabling capabilities that were impossible with the legacy PAN system. It is the foundational layer of digital commerce, and the institutions that build on it now will lead the next wave of innovation.
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