Friday, August 30, 2024 At the Global Fintech Fest in Mumbai, Mastercard made a groundbreaking announcement: the global launch of its new Payment Passkey Service, designed to revolutionize the security and convenience of online shopping. This innovative service will first be piloted in India, partnering with some of the country’s major payment players, including Juspay, Razorpay, and PayU, along with prominent online merchants like bigbasket and leading banks such as Axis Bank. The initiative aims to provide millions of consumers with enhanced control and peace of mind during online transactions.
In recent years, one-time passwords (OTPs) have gained popularity for their simplicity. However, their vulnerability to cyber threats such as phishing, SIM swapping, and message interception has become a significant concern. According to the Reserve Bank of India’s Annual Report for 2023-2024, the number of fraud cases in India has soared by nearly 300% over the past two years, underscoring the need for more robust security measures.
Enter Mastercard’s Payment Passkey Service, which leverages device-based biometric authentication—like fingerprints and facial recognition—to transform online shopping. By eliminating the need for traditional passwords and OTPs, this service makes transactions not only quicker but also more secure, effectively shielding consumers from fraud. With payment passkeys, users can bid farewell to the common woes of forgetting passwords or inadvertently sharing sensitive information.
The Payment Passkey Service utilizes advanced tokenization technology to safeguard consumers’ payment details and biometric data, ensuring that this information remains private and inaccessible to potential fraudsters. Here’s how the service enhances the online checkout experience: By introducing this innovative service, Mastercard is setting a new standard for online transaction security, offering a seamless and secure shopping experience that gives consumers more confidence and protection in the digital marketplace. “By introducing the Mastercard Payment Passkey Service in India, we’re advancing secure online checkout and our vision for a token economy,” said Jorn Lambert, chief product officer at Mastercard.
“Through innovative technology that enhances security and convenience, we’re creating a more transparent commerce ecosystem for all. As we continue to lead the way in digital payments, our commitment to achieving a tokenized future is stronger than ever.” India, known for its dynamic and rapidly expanding payment ecosystem, is at the forefront of adopting innovative technologies like payment passkeys and advanced biometric authentication.
These advancements align with the Reserve Bank of India’s vision for a safer and more resilient payment system. Payment passkeys are more than just a tool for speed and convenience—they represent a significant leap in security, aiming to enhance the shopping experience for users. For businesses, this translates to fewer abandoned carts and reduced fraud.
For consumers, it offers faster checkouts and greater peace of mind. Mastercard’s Payment Passkey Service is specifically designed for online or remote tokenized transactions, a method proven to significantly cut down on fraud and boost transaction approval rates. By integrating tokenization of payment credentials with intuitive biometric authentication, Mastercard leverages industry standards from EMVCo, the World Wide Web Consortium, and the FIDO Alliance to ensure a seamless and secure checkout process.
After a successful pilot program in India, Mastercard plans to extend the Payment Passkey Service to more consumers and financial institutions globally in the coming months. This expansion aims to revolutionize the way we think about online payments, combining the best of technology and security to enhance the user experience and protect against fraud..
