Mastercard Introduces Payment Passkey Service at Global Fintech Fest

During the Global Fintech Fest in Mumbai, Mastercard announced the global launch of its Payment Passkey Service aimed at enhancing the security and convenience of online shopping. The service will first be piloted in India in collaboration with major payment companies, including Juspay, Razorpay, PayU, online merchants like BigBasket, and banks such as Axis Bank.

Addressing Growing Fraud Concerns

As the use of one-time passwords (OTPs) grows, so do vulnerabilities to scams such as phishing, SIM swapping, and message interception. According to the Reserve Bank of India's Annual Report for 2023-2024, card and online payment fraud has risen over 700% in the last two years. The introduction of payment passkeys seeks to address these security issues.

What is the Mastercard Payment Passkey Service?

The Mastercard Payment Passkey Service leverages biometric authentication, such as fingerprints or facial scans, to simplify and secure online transactions. This service replaces traditional passwords and OTPs, aiming to reduce the risk of fraud and make transactions more efficient.

How it Works

1. Shoppers select Mastercard as their payment method or use a card stored securely on file.

2. Biometric authentication, such as a fingerprint or face scan, is used to confirm the payment.

3. Upon successful authentication, the payment is completed instantly.

Enhanced Security Through Tokenization

The service uses passkeys and tokenization to protect consumer information during checkout. This ensures that no financial account data is shared with third parties, reducing the risk of fraud and making online shopping more secure.

This initiative by Mastercard reflects a broader effort to improve online payment security and streamline the consumer experience. 

“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 at 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.” 

India Adopts Payment Passkeys for Safer Transactions

India's growing payment ecosystem and advancements in tokenization are aligning with the Reserve Bank of India's objective to create a safer and more resilient payment system. Payment passkeys, which utilize enhanced biometric authentication, are being embraced across the market.

Benefits for Businesses and Consumers

For businesses, the adoption of payment passkeys can lead to fewer abandoned carts and reduced fraud. For consumers, the system offers faster checkouts and increased security, improving the overall shopping experience.

"India’s digital transformation has truly laid the foundation of Viksit Bharat. Mastercard is committed to supporting 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, of South Asia.

Mastercard Payment Passkey Service Launch - Partners React

"We are excited to be partnering with Mastercard to pilot its Payment Passkey Service as an alternate transaction authentication method and provide our customers a non-OTP-based solution for transaction management,” said Sanjeev Moghe, president and head, of Cards & Payments, at Axis Bank. “This will allow us to provide more engaging usage and in-app experience for customers who desire enhanced security and frictionless payments.”

“Enabling this industry-first proof of concept underscores Juspay’s commitment to empowering merchants with innovation and technology that improves the e-commerce experience,” said 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, safely and securely using device biometrics. We are working with Mastercard to shape a future where digital payments are seamless and accessible to all, enabling merchants to serve their customers better.”

"As the country’s payment ecosystem matures, the demand for advanced and secure payment solutions is greater than ever,” said Manas Mishra, PayU’s chief product officer. “At PayU, we are relentlessly focused on pushing the boundaries of payment security and user experience as a resiliently progressive payments platform. Integrating the Mastercard Payment Passkey Service is a pivotal step in that direction. This partnership reflects our commitment to embracing cutting-edge payment technologies and reinforces our role in setting new benchmarks for security and efficiency in digital transactions."

"We are thrilled to join forces with Mastercard to introduce its Payment Passkey Service in India, a groundbreaking initiative that enhances transaction security and user experience in remote commerce, leveraging the power of biometric authentication,” said Arif Khan, chief innovation officer of Razorpay. “At Razorpay, our focus is on the 3 's's — safety, simplification and success rate — to ensure seamless and secure online payments. We strive to stay ahead of the curve by integrating advanced technologies that not only safeguard our merchants and their customers but also streamline the payment process."