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Commonwealth Bank to Introduce Click to Pay for Enhanced Online Security
In a significant move towards improving online payment security, Commonwealth Bank (CBA) has announced the launch of Mastercard’s Click to Pay feature for its seven million debit and credit card customers, set to roll out in August. This innovative payment option is designed to streamline online shopping and reduce card-related fraud, which costs Australians over $2 billion annually.
Simplifying Online Payments
Traditionally, online shoppers have to enter their personal information, including a 16-digit card number, expiration date, and CVC code, which can be laborious and increase the risk of fraud. CBA’s Executive General Manager of Everyday Banking, Monica Wegner, explained that with Click to Pay, customers will be automatically enrolled, and their sensitive payment details will remain secure, as they won’t be shared with the retailer.
“This is effectively a one-click payment method—select, authenticate, and complete your purchase,” Wegner noted. The new system uses a process called "tokenisation," generating a unique token for each transaction, enhancing security even further.
Transaction Security and Customer Benefits
Research indicates that card fraud rates significantly decrease when transactions employ authenticated tokens like Click to Pay, with rates being six times lower than those where details are manually entered. This method not only protects customers’ sensitive information but also expedites the transaction process.
One CBA customer, Magdalena Zajac, has highlighted the advantages of the new system, as she has previously missed out on purchasing sought-after concert tickets due to delays in inputting her payment details. “It’s crucial to act quickly when these tickets are released, and this will help avoid missing out,” she commented.
Future Innovations: Numberless Cards
In addition to implementing Click to Pay, Wegner expressed the bank’s interest in introducing numberless debit and credit cards, a move endorsed by Mastercard to further mitigate fraud risks. AMP has already taken the lead in offering numberless cards to its small business clients, while discussions are underway at other institutions.
Richard Wormald, Mastercard’s local president, explained how numberless cards would function through banking apps, allowing users to generate temporary card numbers that can be restricted to specific retailers or time frames. This innovative approach could render stolen card data useless if hackers are unable to access actual card numbers.
Industry Outlook
The Australian Bureau of Statistics reported that over two million Australians fell victim to card fraud during the 2023-24 financial year, with total losses amounting to $2.1 billion. With the implementation of Click to Pay, CBA aims to address these alarming statistics, providing a safer online shopping experience while maintaining the option for traditional payment methods for those who prefer them.
CBA customers can look forward to the activation of Click to Pay next month, enhancing the safety and efficiency of their online transactions while allowing for greater peace of mind in a digital shopping landscape.
