Mastercard Launches Biometric Payment Passkey Service in India to Boost Online Shopping Security

Mastercard announced the global launch of its Payment Passkey Service, aiming to simplify and secure online shopping. India will serve as the pilot market in collaboration with major players in the payment landscape - aggregators like Juspay, Razorpay, and PayU, online retailers like Bigbasket, and leading banks like Axis Bank.

This move addresses the rising concern about online fraud, particularly targeting one-time passwords (OTPs). India has witnessed a staggering 300% increase in fraud cases involving cards and online payments within the past two years, with a total surge of over 700% according to the Reserve Bank of India.

Payment Passkeys: A Secure and Convenient Solution

Mastercard's Payment Passkey Service leverages biometrics on consumer devices, like fingerprint or facial scans, for a different purpose: streamlining online shopping. This technology replaces traditional passwords and OTPs, offering a faster and safer checkout experience. No more struggling with forgotten passwords or accidentally sharing sensitive information.

How Payment Passkeys Work:

1. Consumers select their Mastercard at checkout, either as a guest or using a card already stored securely with the merchant.
2. To confirm the purchase, shoppers utilize their device's built-in biometric authentication (fingerprint, face scan, or PIN).
3. Upon successful verification, the payment is completed instantly.

"This launch in India marks a significant step towards secure online checkout and our vision for a token-based economy," stated 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 developing payment infrastructure and advanced tokenization market make it the perfect launchpad for Mastercard's Payment Passkey Service. This aligns with the Reserve Bank of India's initiatives to establish a robust and secure payment system.

"Payment passkeys go beyond just speed," said 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."

The company plans to expand the Mastercard Payment Passkey Service to additional consumers and financial institutions globally after the initial pilot program in India is complete.