Mastercard Introduces Biometric Payment Passkey Service in India to Enhance Online Shopping Security

Mastercard has unveiled its Payment Passkey Service on a global scale, representing a major leap forward in online payment security and user convenience. India has been chosen as the initial pilot market for this groundbreaking service, reflecting its advanced payment infrastructure and growing digital economy. This initiative is launched in partnership with leading players in the payment ecosystem, including prominent aggregators like Juspay, Razorpay, and PayU, as well as major online retailers such as Bigbasket and prominent banks like Axis Bank.

The primary objective of the Payment Passkey Service is to address the escalating issue of online fraud, especially those targeting one-time passwords (OTPs). By leveraging biometric authentication—such as fingerprint or facial recognition—Mastercard aims to offer a more secure, seamless, and efficient online shopping experience, minimizing the risks associated with traditional password and OTP systems.

Addressing the Surge in Online Fraud

The launch of Mastercard's Payment Passkey Service comes in response to a dramatic increase in online fraud. India has experienced a staggering 300% rise in fraud cases involving cards and online payments over the past two years. According to the Reserve Bank of India, there has been a total surge of over 700% in such cases, highlighting the urgent need for more secure payment solutions.

Payment Passkeys: A Secure and Convenient Solution

Mastercard’s Payment Passkey Service introduces a new method of authentication for online transactions, utilizing biometrics on consumer devices. This innovative approach replaces traditional passwords and OTPs with a more secure and user-friendly method. The use of biometrics—such as fingerprint or facial recognition—streamlines the online checkout process, eliminating issues related to forgotten passwords or the accidental sharing of sensitive information.

How Payment Passkeys Work

1. Checkout Selection: At the checkout stage, consumers choose their Mastercard either as a guest or from a card already securely stored with the merchant.

2. Biometric Authentication: To confirm the purchase, shoppers use their device's built-in biometric authentication—such as a fingerprint scan, facial recognition, or PIN.

3. Instant Payment: Once the biometric verification is successful, the payment is processed instantly, ensuring a smooth and secure transaction.

“This launch in India marks a significant step towards secure online checkout and our vision for a token-based economy,” said Jorn Lambert, Mastercard’s Chief Product Officer. “We’re building a more transparent and secure payment environment by leveraging innovative technologies that enhance convenience.”

India: A Testbed for Payment Innovation

India’s rapidly evolving payment infrastructure and advanced tokenization market make it an ideal location for Mastercard’s Payment Passkey Service launch. The country’s robust payment system aligns with the Reserve Bank of India’s initiatives to establish a secure and efficient payment environment. Mastercard’s choice to pilot the service in India underscores the country’s role as a leader in payment innovation.

“Payment passkeys go beyond just speed,” stated Gautam Aggarwal, Mastercard’s Division President for South Asia. “They offer enhanced security and a more enjoyable shopping experience for users. Businesses benefit from reduced cart abandonment and fraud, while consumers gain faster checkouts and peace of mind.”

Future Expansion Plans

Following the pilot program in India, Mastercard plans to extend the Payment Passkey Service to additional consumers and financial institutions globally. This expansion will aim to further enhance online payment security and convenience on a worldwide scale.

In conclusion,

Mastercard’s introduction of the Payment Passkey Service marks a significant leap forward in online payment technology, aiming to revolutionize how transactions are conducted. This innovative service employs biometric authentication, such as fingerprint or facial recognition, to enhance security and streamline the payment process. By moving beyond traditional passwords and one-time passwords (OTPs), Mastercard addresses critical issues related to online fraud, which has surged dramatically in recent years.

The pilot program in India is a strategic move, given the country’s rapidly evolving payment landscape and its high rate of digital transactions. This initiative not only aims to tackle rising concerns about fraudulent activities but also seeks to improve user convenience by offering a faster and more secure checkout experience. Mastercard’s Payment Passkey Service represents a pivotal step towards a more secure, efficient, and user-friendly digital payment ecosystem on a global scale.