Mastercard Looks to Streamline e-Commerce with Payment Passkey Service

Mastercard has expanded its biometric payment authentication system with the launch of its Payment Passkey Service, which eliminates the need for one-time passwords (OTPs) by leveraging device-native biometric capabilities. The system, announced at the Singapore Fintech Festival, represents a significant development in the company’s authentication strategy.

The new service combines tokenization technology with biometric authentication, building on Mastercard’s previous work with biometric payments. When users make online purchases, they can authenticate using their device’s built-in biometric sensors rather than receiving and entering OTP codes.

The technology integrates with the EMVCo Secure Remote Commerce standard, which provides a framework for securing digital payments. It also incorporates FIDO Alliance protocols for passwordless authentication, ensuring compatibility across different devices and platforms.

“This implementation marks a significant evolution in online payment security,” said Sandeep Malhotra, Executive Vice President, Products & Innovation, Asia Pacific at Mastercard. “By eliminating OTPs, we’re reducing friction while maintaining security standards.”

The system stores tokenized payment credentials and biometric data locally on users’ devices, following the principle of decentralized authentication that has gained traction in the identity industry. This approach addresses privacy concerns by ensuring sensitive biometric information never leaves the user’s device.

Initial deployment has begun with several major banks in Asia Pacific, including DBS Bank and United Overseas Bank (UOB). These institutions are integrating the Payment Passkey Service into their existing digital banking platforms, with UOB having previous experience implementing biometric authentication systems.

The service also supports Click to Pay, an initiative that allows users to store payment information securely with their card network. This integration enables streamlined guest checkouts while maintaining the enhanced security of biometric verification.

Mastercard has indicated plans to expand the service globally throughout 2024, working with additional financial institutions and merchants to broaden adoption. The company is also collaborating with digital wallet providers to integrate the technology into existing payment ecosystems.

Sources: Finextra, The Paypers

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November 6, 2024 – by the ID Tech Editorial Team