Payment passkeys speed up transactions using biometrics, enhancing security and convenience for consumers and businesses
DELHI – August 30, 2024 – During a keynote presentation at Global Fintech Fest in Mumbai, Mastercard announced the worldwide launch of 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 payment aggregators such as Juspay, Razorpay and PayU, online merchants such as bigbasket and leading banks such as Axis Bank, the service will give millions of consumers more control and peace of mind when checking out online.
Despite the rising popularity of one-time passwords (OTPs) due to their ease of use, they are increasingly vulnerable to online scams such as phishing, SIM swapping and message interception. In India, the incidence of fraud cases has surged by nearly 300% in the last two years. Card and online payment fraud, which includes other digital payment methods, skyrocketed over 700%, according to the Reserve Bank of India’s Annual Report for 2023-2024.
Enter payment passkeys. They use device-based biometric authentication methods such as fingerprints or facial scans, but for an entirely new purpose: to streamline online shopping experiences. 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.
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. 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.
- To confirm the payment, users can use the biometric authentication mechanism features on their device – whether it’s a fingerprint, face scan or PIN.
- Upon successful authentication, the payment is instantly completed.
“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, 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.
“India’s digital transformation has truly laid the foundation of Viksit Bharat. Mastercard is committed to supporting India’s vision by making commerce smarter, safer, and more inclusive. Today’s global launch of the Mastercard Payment Passkey Service pilot here in India reflects two things- recognition of India’s global leadership in tokenization and Mastercard’s dedication to supporting the digitization journey. The imperative is enhancing digital interactions for all stakeholders while embedding trust in every touchpoint,” said Gautam Aggarwal, Division President, South Asia.
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.
