Mastercard has unveiled plans to transform online shopping by eliminating manual card entry and passwords by 2030, replacing them with biometric authentication methods. The initiative aims to enhance both security and user experience in digital transactions, building on the company’s recent expansion of biometric authentication systems.
The payment giant plans to implement biometric verification methods such as fingerprints and facial recognition, combined with tokenization technology. This approach replaces sensitive payment information with unique tokens for transactions, rather than using actual card details. Early implementation has shown promising results, with transaction approval rates improving by 3-6 percentage points and generating up to $2 billion in additional monthly global sales for merchants.
The initiative addresses a critical security challenge in e-commerce, where fraud occurs at seven times the rate of in-store transactions. It also targets the persistent issue of cart abandonment, which currently affects 25 percent of online transactions. This security-focused approach follows Mastercard’s longstanding commitment to payment innovation, including their earlier move to eliminate signature requirements for purchases.
Tokenization has already gained significant traction, with over 30 percent of Mastercard transactions worldwide now being tokenized. In markets like India, e-commerce tokenization adoption approaches 100 percent. The company is working with various partners including Commonwealth Bank of Australia, Just Eat Takeaway.com, Adyen, and Worldline to implement these changes globally.
Jorn Lambert, Chief Product Officer at Mastercard, explained: “Just like the transition from signing and swiping to tapping cards, we’re now moving from manual entry and passwords to seamless and secure payments in just a few clicks. With this shift we are protecting sensitive data through advanced encryption and tokenisation technologies.”
The initiative builds on Mastercard’s previous security innovations, including being the first payment network to phase out magnetic stripes in 2021. The company is rolling out services such as Payment Passkey Service and Click to Pay, with support from partners like Axis Bank and Razorpay. The Payment Passkey Service specifically eliminates the need for one-time passwords by leveraging device-native biometric capabilities, while Click to Pay has already been adopted by institutions such as ING Spain and merchants like Pizza Hut.
Source: Mastercard
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November 14, 2024 – by the ID Tech Editorial Team
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