Mastercard unveils biometric payment passkey service

Mastercard has introduced enhancements to its Payment Passkey Service, which enables secure, on-device biometric authentication for online transactions.

The new technology replaces traditional one-time pins (OTPs) with biometric verification methods such as facial scans or fingerprints, akin to those used by consumers to unlock their smartphones. This development is part of Mastercard's effort to fortify security and streamline payment processes.

Mastercard's Payment Passkey Service utilises tokenization, Click to Pay, and biometric authentication to create a seamless, one-click checkout experience across devices, eliminating the need for static or one-time passwords. This system allows shoppers to authenticate payments biometrically, even in guest checkout scenarios, without needing an account or saved card with the merchant.

Sandeep Malhotra, Executive Vice President of Products & Innovation in Asia Pacific at Mastercard, commented, "Just as contactless technology made in-person payments seamless and ubiquitous, Mastercard sees the opportunity to bring that same experience to online checkout. That's why we're calling 'time' on one-time passwords and multi-step payment authentication. With biometric authentication with payment passkeys, shoppers are spared the hassle of cumbersome checkouts while merchants enjoy both speed and security."

The key advantages of the Mastercard Payment Passkey Service include a hassle-free checkout process, increased sales by reducing cart abandonment, and enhanced security by eliminating the risk of passwords being stolen or compromised. This technology also ensures that neither the consumer's payment credentials nor biometric data are shared with third parties, thus protecting data from fraudsters.

Jan Lim, Chief Business Officer of South East Asia at Lenskart, remarked, "The Mastercard with Payment Passkey Service is a game-changer for e-commerce. By eliminating friction points in the customer experience, our glasses are just a click away for shoppers. Meanwhile, instead of having to stress about payment security or order completion, we can focus on creating the best in fashionable eyewear."

Sheetal Lalwani, COO and Co-founder of Juspay, said, "Launching this industry-first concept in Asia highlights Juspay's dedication to enhancing e-commerce through innovation and technology. With the Mastercard Payment Passkey Service, merchants will see higher payment success rates and increased sales while consumers can make secure, biometric payments without multiple redirects, making digital payments seamless and accessible."

In Australia, Mastercard is collaborating with various payment partners, including PayFURL, to implement this technology, with a pilot expected shortly. In Singapore, companies such as Lenskart have already adopted the system, supported by local banks like DBS and UOB.

Mastercard's strategy aligns with established industry standards set by EMVCo, the World Wide Web Consortium, and the FIDO Alliance, ensuring secure and efficient online checkouts. This initiative follows the worldwide launch of the biometric authentication service by Mastercard in India earlier this year, with plans for further expansion into key global markets.