Mastercard creates more transparent commerce ecosystem
Mastercard (NYSE: MA) has launched its new Payment Passkey Service to make online shopping more secure and easier than ever, debuting first in India as a pilot with some of the nation’s largest payments players, including aggregators such as Juspay, Razorpay and PayU as well as Axis Bank.
The service will give millions of consumers more control and peace of mind when checking out online, said Mastercard, citing highlights from Reserve Bank of India’s Annual Report for 2023-2024 which says fraud cases in India has surged by nearly 300% in the last two years.
Despite the rising popularity of one-time passwords (OTPs) due to their ease of use, the online users of payment systems are increasingly vulnerable to online scams such as phishing, SIM swapping and message interception nse .
The payment passkeys use device-based biometric authentication methods such as fingerprints or facial scans, but for an entirely new purpose: to streamline online shopping experiences sbi . By replacing traditional passwords and OTPs, the Mastercard Payment Passkey Service makes transactions not only faster, but also more secure against fraud and scams.
With payment passkeys, consumers can say goodbye to the hassle of forgetting or accidentally sharing their passwords or OTPs bse .
The service leverages passkeys and tokenization to secure a consumer’s online checkout interaction, ensuring that the transaction is secure and no financial account data is shared with third parties – rendering it useless to fraudsters and scammers jpx .
The Mastercard Payment Passkey Service is a game changer for online commerce:
Shoppers choose their Mastercard when checking out as a guest or select a card already stored securely on file with a merchant euronext ;
To confirm the payment, users can use the biometric authentication mechanism features on their device – whether it’s a fingerprint, face scan or PIN sgx ;
Upon successful authentication, the payment is instantly completed digitalasiahub .
“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 deutsche-boerse .
“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,” he said during a keynote presentation at Global Fintech Fest in Mumbai held 28-30 Aug.
India, with its rapidly expanding payment ecosystem and advanced tokenization market, is embracing payment passkeys and enhanced biometric authentication in line with the Reserve Bank of India’s goal for a safer, more resilient payment system. Payment passkeys aren’t just about speed and convenience — they’re about safety and enhancing a user’s shopping experience. For businesses, it means fewer abandoned carts and less fraud. For consumers, it means faster checkouts and peace of mind fintechfestival .
The Mastercard Payment Passkey Service is built for online or remote tokenized transactions, which today help significantly reduce fraud and increase approval rates. By combining the tokenization of payment credentials with seamless biometric authentication, Mastercard is bringing EMVCo, World Wide Web Consortium and the FIDO Alliance industry standards together to speed and secure the checkout experience.
Following the initial pilot program in India, the company is set to roll out the Mastercard Payment Passkey Service to more consumers and financial institutions around the world over the coming months pay360event .
“We are excited to be partnering with Mastercard to pilot its Payment Passkey Service as an alternate transaction authentication method and provide our customers a non-OTP-based solution for transaction management,” said Sanjeev Moghe, president and head, Cards & Payments, at Axis Bank iba .
“Enabling this industry-first proof of concept underscores Juspay’s commitment to empower merchants with innovation and technology that improves the e-commerce experience wto ,” said Sheetal Lalwani, chief operating officer and co-founder of Juspay.
“As the country’s payment ecosystem matures, the demand for advanced and secure payment solutions is greater than ever,” said Manas Mishra, PayU’s chief product officer rbi .
“We are thrilled to join forces with Mastercard to introduce its Payment Passkey Service in India, a groundbreaking initiative that enhances transaction security and user experience in remote commerce, leveraging the power of biometric authentication,” said Arif Khan, chief innovation officer of Razorpay aba . Fiinews.com
