Mastercard reported that 30% of its transactions in 2024 were tokenized, according to a filing with the US Securities and Exchange Commission (SEC). The filing states clearly “ Approximately 30% of all Mastercard transactions are now tokenized” In the filing, the company emphasized its commitment to digital finance while acknowledging the growing competition in the evolving payments industry.
Mastercard highlighted the rapid technological advancements reshaping the financial landscape. The company noted that blockchain innovations and enhanced cybersecurity are transforming payment systems. These developments could introduce more efficient solutions that challenge existing technologies. According to the firm: “These changes could result in new technologies that may be superior to, or render obsolete, the technologies we currently use in our programs and services. They may also result in new and innovative payment methods, products and services.”
The firm also pointed out that stablecoins and cryptocurrencies are emerging as viable alternatives to traditional payment methods. Their efficiency and round-the-clock accessibility have driven wider adoption, particularly in merchant transactions and business-to-business (B2B) payments. Mastercard noted that regulatory developments could further accelerate the adoption of digital currencies, impacting its operations.
Meanwhile, the payment giant stated that governments worldwide are actively researching central bank digital currencies (CBDCs), which could lead to the creation of dedicated financial networks. If this should happen, Mastercard said: “[This may] impact the extent of our role in facilitating CBDC-based payment transactions, potentially impacting the transactions that we may process over our network.”
Mastercard is expanding its blockchain initiatives and increasing tokenization efforts to stay competitive. The company is focused on secure, scalable, and interoperable blockchain-based payment solutions. It stated: “[We are] investing in the future and driving market transformation by extending the reach of our network to enable the tokenization of credentials, identities, assets and data and the exchange of those items between counterparties.”
Mastercard pointed out that it holds patents in blockchain, artificial intelligence, and payment security, reinforcing its commitment to digital finance. Furthermore, it has developed technology to tokenize CBDCs across multiple blockchain networks.
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