Mastercard has announced the global launch of its Payment Passkey Service, marking a significant step forward in secure online transactions. Unveiled at the Global Fintech Fest in Mumbai, this innovative service aims to make online shopping more secure and convenient, with India chosen as the debut market for its pilot program.
India’s rapidly growing digital payment ecosystem and advanced tokenization market make it the ideal starting point for this groundbreaking initiative. The pilot will involve some of the nation’s leading payment players, including aggregators like Juspay, Razorpay, and PayU, major online merchants like BigBasket, and top financial institutions like Axis Bank.
The Payment Passkey Service is designed to address the growing threat of online fraud, which has seen a nearly 300% increase in India over the past two years, according to the Reserve Bank of India. By leveraging device-based biometric authentication methods—such as fingerprints or facial scans—the service eliminates the need for traditional passwords and one-time passwords (OTPs), which have become increasingly vulnerable to scams like phishing and SIM swapping.
“By introducing the Mastercard Payment Passkey Service in India, we’re advancing secure online checkout and our vision for a token economy,” said Jorn Lambert, Chief Product Officer, Mastercard. “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.”
Also Read: Razorpay Unveils Groundbreaking Payment Solutions at GFF 2024
The service enhances security by utilizing passkeys and tokenization to ensure that no financial account data is shared with third parties, thereby rendering it useless to fraudsters. This new approach not only speeds up the checkout process but also significantly reduces the risk of fraud, leading to fewer abandoned carts for businesses and more peace of mind for consumers.
India’s digital transformation has truly laid the foundation of Viksit Bharat. Mastercard supports India’s vision by making commerce smarter, safer, and more inclusive. Today’s global launch of the Mastercard Payment Passkey Service pilot here in India reflects two things- recognition of India’s global leadership in tokenization and Mastercard’s dedication to supporting the digitization journey. The imperative is enhancing digital interactions for all stakeholders while embedding trust in every touchpoint,” said Gautam Aggarwal, Division President, South Asia, Mastercard.
Following its pilot in India, Mastercard plans to extend the Payment Passkey Service to more consumers and financial institutions globally, setting a new standard for secure online shopping in the digital age.
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