Mastercard has launched its new Payment Passkey Service
globally. The service aims to make online shopping more secure and efficient.
The launch was announced during a keynote presentation at the Global Fintech
Fest in Mumbai.

The service will first be piloted in India, working with
major payments players, including Juspay, Razorpay, and PayU. Online merchants
such as bigbasket and banks like Axis Bank are also participating in the pilot.

Biometric Passkeys Replace OTPs

This service responds to rising concerns about the security
of online transactions. Although one-time passwords (OTPs) are popular due to
their ease of use, they are becoming vulnerable to various scams, including
phishing, SIM swapping, and message interception.

The Payment Passkey Service uses biometric authentication
methods, such as fingerprints or facial scans, to streamline online shopping.

By replacing traditional passwords and OTPs, the service intends to make
transactions faster and more secure. Consumers will no longer need to remember
or share passwords or OTPs, reducing the risk of fraud.

“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.”

.@Mastercard Selects India for the Global Launch of Its Payment Passkey Service, Accelerating Secure Online Checkout for Millions of ShoppersRead more: https://t.co/F7YVHVRB36#SecureCheckout #Mastercard #IndiaLaunch #FintechInnovation #finance #fintech #FinancialIT

— Financial IT (@financialit_net) August 29, 2024

Passkey Service Goes Global

The service uses tokenization to protect a user’s payment
details and biometric data. No data is shared with third parties, making it
difficult for fraudsters to access sensitive information. The Payment Passkey
Service follows a simple process.

Shoppers choose their Mastercard during
checkout, use biometric authentication on their device, and, once
authenticated, the payment is completed instantly. After the initial pilot in India, Mastercard plans to expand
the Payment Passkey Service to more consumers and financial institutions
worldwide in the coming months.

This article was written by Tareq Sikder at www.financemagnates.com.

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