Mastercard has chosen India for the global debut of its Payment Passkey Service, a ground-breaking solution aimed at securing online shopping by enhancing both security and convenience.
Unveiled at the Global Fintech Fest in Mumbai, the service is initially being piloted with major Indian payment players like Juspay, Razorpay, and PayU, alongside online merchants such as bigbasket and banks including Axis Bank.
The service uses biometric authentication—such as fingerprints or facial recognition—replacing traditional passwords and one-time passwords (OTPs) with a more secure and efficient system.
Given the significant rise in online fraud in India, with a 300% increase in cases over the past two years, this development comes at a crucial time.
The Payment Passkey Service offers consumers a frictionless and secure checkout experience by leveraging tokenization, which ensures that payment details and biometric data are secure and useless to fraudsters.
The service works thus: consumers select their Mastercard during checkout, authenticate via their device’s biometric features, and complete their purchase instantly.
By eliminating the need for passwords or OTPs, Mastercard aims to reduce cart abandonment and enhance consumer trust in digital payments.
Commitment to India
Mastercard’s commitment to India reflects the country’s rapidly evolving payment ecosystem, which is well-aligned with the Reserve Bank of India’s goals for a safer and more resilient payment infrastructure.
The new Payment Passkey Service is expected to set a new standard in online transaction security, with plans for a broader global rollout in the coming months.
Key partners in this launch, including Axis Bank, Juspay, PayU, and Razorpay, have expressed their enthusiasm for the potential of this service to improve payment success rates and provide a more secure, streamlined experience for both merchants and consumers.
“Enabling this industry-first proof of concept underscores Juspay’s commitment to empower merchants with innovation and technology that improves the e-commerce experience,” says Sheetal Lalwani, chief operating officer and co-founder of Juspay.
“We believe this solution will help our merchant customers improve payment success rates and overall sales. With this pilot, merchants can significantly improve the payment experience for end consumers, allowing them to make payments easily, without multiple redirects, in a safe and secure way using device biometrics.
We are working with Mastercard in shaping a future where digital payments are seamless and accessible to all, enabling merchants to better serve their customers.”
The collaboration marks a significant step forward in digital payment security, aligning with global industry standards like EMVCo, the World Wide Web Consortium, and the FIDO Alliance.
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