Mastercard, a global technology in the payments industry recently, announced the worldwide launch of its new Payment Passkey Service.
What is Payment Passkey Service?
- It aims to make online shopping more secure and easier, along with giving millions of consumers more control and peace of mind when checking out online.
- Payment passkeys use device-based biometric authentication methods such as fingerprints or facial scans, but for an entirely new purpose: to streamline online shopping experiences.
- By replacing traditional passwords and One-time passwords (OTPs), this Payment Passkey Service makes transactions faster, and more secure against fraud and scams.
- Through innovative technology it enhances security and convenience, by creating a more transparent commerce ecosystem for all.
- Despite the rising popularity of OTPs due to their ease of use, they are increasingly vulnerable to online scams such as phishing, SIM swapping and message interception.
- In India, the incidence of fraud cases has surged by nearly 300% in the last two years.
- Card and online payment fraud, which includes other digital payment methods, crossed over 700%, based on RBI’s Annual Report for 2023-24.
- Its launch in India, marks the global leadership in tokenisation and supports the digitisation journey.
How Payment Passkey Works?
- Shoppers choose their card when checking out as a guest or select a card already stored securely on file with a merchant.
- To confirm the payment, users can use the biometric authentication mechanism features on their device – whether it’s a fingerprint, face scan or PIN.
- Upon successful authentication, the payment is instantly completed.
- It combines tokenisation of payment credentials with seamless biometric authentication.
Ref: Source
| UPSC IAS Preparation Resources | |
| Current Affairs Analysis | Topperspedia |
| GS Shots | Simply Explained |
| Daily Flash Cards | Daily Quiz |
Frequently Asked Question:
What is the Payment Passkey Service?
It is a new initiative designed to enhance the security and convenience of online shopping. It uses device-based biometric authentication.
How does the Payment Passkey Service improve online shopping?
The service improves online shopping by making transactions faster and more secure. It replaces the need for passwords and OTPs, reducing the risk of fraud and scams while providing a smoother checkout experience.
What types of biometric authentication does the Payment Passkey Service use?
The service uses various biometric authentication methods, including fingerprint scans, facial recognition, and PINs, depending on the features available on the user’s device.