Retailers in the US and the UK are implementing security checks, such as 3D Secure and Verified by Visa, during the online checkout process. But the checks may obstruct the shopping experience, which can translate into lost sales.
MasterCard wants to simplify the online shopping experience for MasterCard holders at a time when retailers are beginning to complicate it with extra security measures at checkout.
In the UK, 18% of online shoppers abandoned their baskets due to ‘excessive payment security checks’ in 2012. And in the US, companies lost USD 118 billion in potential sales in 2015 due to false positives, transactions that are wrongly declined because financial institutions incorrectly associate them with fraud.
MasterCards new platform, called the Identity Check app, gives its cardholders the option to pay with a selfie, as an alternative to the fingerprint. MasterCard holders at participating financial institutions can install MasterCards the Identity Check app on their mobile devices, but it will only work for online purchases, not at physical retailers.
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