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.”
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.
