By Ray Birch
PETERBOROUGH, N.H.—In a bold move to combat identity theft and reduce fraud, Mastercard announced it will eliminate the traditional 16-digit number from all credit and debit cards by 2030—and credit unions should be paying attention to the move today, one expert is saying.
The initiative, set to begin with a rollout in partnership with AMP Bank, will replace the familiar digits with tokenization and biometric authentication — signaling a future where paying with a smile or a wave becomes the norm.
The change represents a major shift in how card payments work. Instead of printing static numbers on plastic, Mastercard will rely on tokenization — converting the card number into a unique token stored securely on a device. When a consumer taps their phone or card, that token is used to process the payment without ever revealing the real card number.
Mastercard first leaned into biometrics in 2022, enabling payments through facial recognition or gestures. Now, it’s doubling down.
“This is about limiting bad actors’ access to card credentials,” said Tim Kolk, principal at TRK Advisors. “Visa and Mastercard champion these technologies because they help them control fraud — and that’s where the real benefit lies.”
For credit unions and smaller issuers, the shift isn't necessarily market-defining yet — but it’s becoming increasingly hard to ignore, Kolk said.
“Innovations like this reinforce what we've known: the credit card space won’t stay still,” Kolk said. “Numberless cards aren’t driving the market yet, but they’re part of it. The U.S. has long trailed issuing technologies compared to much of the world, and catching up remains important.”
Tim Kolk
Still, the transition isn’t without its wrinkles. Some U.S. merchants — particularly those relying on older point-of-sale systems — still manually key in card numbers. In scenarios like checking into a hotel or buying an airline ticket at the counter, consumers might find themselves explaining their futuristic card to a confused clerk.
“You can still get your card number from your digital wallet,” Kolk noted. “But these are friction points. Eventually, they’ll fade. But transitions always have such wrinkles.”
As for credit unions wondering whether to make the leap, the advice is to accept that such evolution is constant and they need to build development plans into every annual credit union resource plan.
“At least initially, pick a digitally savvy member segment, test it, learn, and build from there,” Kolk said. “Don’t ignore it. It’s coming and will eventually move to the majority or all of your cardholders. Prepare carefully and move with purpose when the moment arrives.”
In a world inching toward fully digital payment experiences, numberless cards may not be the end of the plastic card era — but they could mark the beginning of its next chapter, Kolk said.