The service aims to improve the security and efficiency of online transactions, starting in the United Arab Emirates, with plans for broader implementation across the region.
The Mastercard Payment Passkey Service simplifies the online checkout process by replacing traditional one-time passwords (OTPs) with device-based biometric authentication, such as fingerprints or facial scans. This system aims to provide a faster, more secure alternative to OTPs, which have become increasingly vulnerable to fraud tactics like phishing and SIM swapping. The service leverages Mastercard’s tokenization technology to increase security, ensuring that card numbers are replaced with tokens, and reducing the risk of data theft.
By integrating this service, noon Payments allows consumers to authenticate payments using their biometric data, optimising transactions while ensuring high protection against fraud. The new system is designed to benefit both consumers, who experience faster checkouts, and ecommerce businesses, which may see reduced cart abandonment and lower fraud risks.
As the MENA region’s ecommerce market continues its rapid expansion, projected to reach USD 49.8 billion by 2028, the adoption of payment solutions like the Mastercard Payment Passkey Service is becoming increasingly vital to supporting the region's evolving digital economy. Consumers are now demanding simple, secure experiences when making online purchases, pushing retailers to invest in innovative digital solutions to stay competitive.
Major platforms such as Amazon UAE, Noon, and Namshi dominate the UAE’s online retail space, catering to the diverse needs of its population with a broad range of products and services. These retailers are not only meeting consumer expectations but are also shaping the region’s digital commerce landscape by integrating the latest payment technologies.
One of the most significant shifts in this landscape is the rise of mobile payments and digital wallets, with contactless payments accounting for over 70% of point-of-sale transactions in 2023. This trend underscores the growing consumer preference for fast, secure, and convenient payment methods. As a result, both consumers and businesses are now more reliant on optimised, technology-driven payment systems that upgrade security and ease of use.
In this context, the Mastercard Payment Passkey Service is well-positioned to address these demands. By replacing traditional one-time passwords with biometric authentication and tokenization, it offers a more secure and efficient solution for online transactions.
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