Mastercard has announced the global rollout of its new Payment Passkey Service in India, offering an alternative method for transaction authentication to enhance the security and ease of online shopping.
During a keynote presentation at the Global Fintech Fest in Mumbai, the company revealed that India will be the first market to pilot this service, in collaboration with selected payment providers, online merchants, and banks.
Following the initial pilot phase in India, the Mastercard Payment Passkey Service will be extended to more consumers and financial institutions worldwide over the coming months.
In India, Mastercard will collaborate with payment aggregators such as Juspay, Razorpay, and PayU, major online merchants including bigbasket, and leading banks such as Axis Bank to introduce the service.
According to Mastercard, payment passkeys expedite transactions using biometrics, providing a faster and more secure online checkout experience for millions of users.
Currently, one-time passwords (OTPs) are prevalent due to their simplicity, but they are increasingly susceptible to online fraud such as phishing, SIM swapping, and message interception. The Reserve Bank of India's Annual Report for 2023-2024 highlighted a nearly 300 percent rise in fraud cases over the past two years.
The Mastercard Payment Passkey Service, designed for online or remote tokenized transactions, will replace traditional passwords and OTPs, making transactions quicker and more secure against fraud and scams. The passkeys utilize device-based biometric authentication methods, such as fingerprints or facial scans, to streamline online shopping.
Mastercard emphasized that it is integrating industry standards from EMVCo, the World Wide Web Consortium, and the FIDO Alliance to enhance the speed and security of the checkout process.
Jorn Lambert, Chief Product Officer at Mastercard, stated, "By introducing the Mastercard Payment Passkey Service in India, we're advancing secure online checkout and our vision for a token economy. Through innovative technology that enhances security and convenience, we're creating a more transparent commerce ecosystem for all. As we continue to lead in digital payments, our commitment to a tokenized future is stronger than ever."
Manas Mishra, Chief Product Officer at PayU, remarked that the demand for advanced and secure payment solutions is greater than ever as the country's payment ecosystem evolves.
Razorpay noted that integrating advanced technologies not only safeguards merchants and their customers but also streamlines the payment process.
