Mastercard is set to launch its Payment Passkey service in India, introducing biometric authentication for online shopping.
Initially, the service will be piloted with some of India’s major payment players, including aggregators such as Juspay, Razorpay, and PayU, along with online merchants like BigBasket and notable banks such as Axis Bank.
Payment Passkeys aim to combat the rising fraud associated with one-time passwords (OTPs), which have become increasingly susceptible to online scams like phishing, SIM swapping, and message interception. According to the Reserve Bank of India’s Annual Report for 2023-2024, fraud cases in the country have increased by nearly 300% over the past two years.
Banks in Singapore have already begun to phase out OTPs in favor of digital tokens for account logins, following incidents where phishing scams led to the theft of over $14.2 million from customer accounts in 2003.
Mastercard’s Payment Passkey utilizes device-based biometric authentication methods, including fingerprints and facial scans, along with tokenization, to secure online transactions. This ensures transaction security while keeping financial account data private, making it less appealing to fraudsters.
“By introducing the Mastercard Payment Passkey Service in India, we’re advancing secure online checkout and our vision for a token economy,” stated 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. Our commitment to achieving a tokenized future is stronger than ever as we continue to lead in digital payments.”
Following the initial pilot program in India, Mastercard plans to expand the service to more consumers and financial institutions worldwide in the coming months.