Mastercard expands biometric payment service for faster checkouts

Mastercard has introduced several improvements to its Payment Passkey Service, a system designed to streamline online payments.

The service allows users to authenticate transactions using facial recognition or fingerprint scanning, much like they unlock their phones, in a push to simplify and secure digital transactions. With a mix of tokenisation, payment passkeys, and a guest checkout feature integrated with Click to Pay, Mastercard aims to remove the need for static passwords or one-time passwords (OTPs) for online purchases. 

The Mastercard Payment Passkey Service also allows users to check out as guests without storing card details with the merchant. By using this feature, merchants could potentially see fewer abandoned shopping carts and increased sales, while consumers benefit from a faster and more secure checkout process.  

The unveiling of this service at the Singapore FinTech Festival builds on Mastercard’s August 2024 global launch in India, where it introduced biometric-enabled payments to a large consumer base, with expansion into several other markets since then.

Expanded benefits of the Payment Passkey Service

The Mastercard Payment Passkey Service aims to deliver several key advantages for consumers, merchants, and financial institutions. Firstly, it offers a streamlined checkout experience by removing the need to wait for banking apps or push notifications, which can be especially challenging in areas with weak connectivity. This smoother process can reduce instances of cart abandonment, helping merchants increase sales. 

Moreover, the integration of biometric authentication supports security by minimising the risk associated with traditional passwords or OTPs, which are increasingly vulnerable to phishing and other online scams. According to Mastercard, around 80% of data breaches worldwide stem from weak or compromised passwords, a concern particularly high in the Asia-Pacific region, where 91% of consumers reportedly worry about cyber threats. By replacing passwords with biometrics, the service helps safeguard users against fraud and other risks associated with traditional authentication methods. 

The tokenisation of both payment credentials and biometric data is a central security feature of the Mastercard Payment Passkey Service. This process ensures that sensitive consumer data is never shared with third parties, reducing the likelihood of data misuse by potential fraudsters.

How It Works 

Once a consumer enrols their Mastercard for online transactions, the payment process is simplified into three steps: 

• During checkout, users choose their Mastercard, either as a guest or from a saved option. 
• They confirm the transaction with biometric verification, like a fingerprint or face scan. 
• The payment is processed immediately after authentication, allowing for a quick and secure checkout.  

The service is already in use with retailers such as Singapore-based eyewear brand Lenskart, in collaboration with Juspay and local banks such as DBS and UOB.  In essence, this setup enables customers to make purchases without needing passwords.