Mastercard Introduces Biometric Payment Passkeys in India

India has been selected as the inaugural country to benefit from Mastercard's new Payment Passkey Service, designed to simplify payment authorization and enhance the security of online shopping, reports PaySpace Magazine. On August 29, Mastercard unveiled this global service at the Global Fintech Fest in Mumbai. The Payment Passkey Service will be piloted by India's leading payment processors, including Juspay, Razorpay, and PayU, alongside online retailers like bigbasket and major banks such as Axis Bank.

The new service utilizes device-based biometric authentication methods, such as fingerprints or facial recognition, to streamline online checkouts. This innovative approach aims to replace traditional passwords and OTPs, which have become increasingly vulnerable to phishing, SIM swapping, and message interception, thus offering limited security for online transactions. For instance, fraud cases in India have surged by nearly 300% over the past two years, according to the Reserve Bank of India's Annual Report for 2023-2024. Between April 1, 2020, and March 31, 2022, over 900,000 incidents of phishing, vishing, and credential/OTP compromise resulted in losses nearing Rs 1500 crore.

To address this issue, Mastercard introduces payment passkeys, powered by tokenization technology, which secures consumers' payment details and biometric data. The passkeys function as follows:

• Shoppers select Mastercard at checkout.

• They use their device's biometric authentication features (fingerprint, facial recognition, or PIN) to confirm the transaction.

India's rapidly growing payment ecosystem and advanced tokenization market make it an ideal location to test this new technology in a real-world setting. Following the initial pilot program in India, Mastercard plans to expand the service to more consumers and financial institutions worldwide.

"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," said Jorn Lambert, chief product officer at Mastercard.

Mastercard has been developing this new biometric authentication technology since at least January, when the service was briefly introduced. Compliant with Fast Identity Online (FIDO) standards, the new tool has the potential to be available to billions of devices globally.