Mastercard, a global technology in the payments industry, on Thursday announced the worldwide launch of its new Payment Passkey Service to make online shopping more secure and easier than ever.
This service has debuted in India as a pilot with some of the nation’s largest payment players including, payment aggregators Juspay, Razorpay and PayU, online merchants such as Bigbasket and banks such as Axis Bank.
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This service is expected to give millions of consumers more control and peace of mind when checking out online.
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Using biometric for shopping
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.
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 One time passwords (OTPs).
“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 tokenised future is stronger than ever.”
Despite the rising popularity of 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 per cent in the last two years. Card and online payment fraud, which includes other digital payment methods, crossed 700 per cent, according to RBI’s Annual Report for 2023-24.
“Today’s global launch of the Mastercard Payment Passkey Service pilot here in India reflects two things- recognition of India’s global leadership in tokenisation and Mastercard’s dedication to supporting the digitisation journey. The imperative is enhancing digital interactions for all stakeholders while embedding trust in every touchpoint,” said Gautam Aggarwal, Division President, South Asia, Mastercard.
India’s digital transformation has truly laid the foundation of Viksit Bharat, he said, adding that Mastercard is committed to supporting India’s vision by making commerce smarter, safer, and more inclusive.
How Payment Passkey Works
The Mastercard Payment Passkey Service is seen as 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 combining the tokenisation of payment credentials with seamless biometric authentication, Mastercard is bringing EMVCo, World Wide Web Consortium and the FIDO Alliance industry standards together to speed up 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.