Mastercard Launches Payment Passkey Service in India [Current Affairs]

Mastercard has globally debuted its Payment Passkey Service in India, aiming to enhance online shopping security and convenience. Unveiled at the Global Fintech Fest in Mumbai, this service, initially piloted with Indian payment leaders like Juspay, Razorpay, and PayU, along with banks such as Axis Bank, leverages biometric authentication—replacing traditional passwords and OTPs with more secure fingerprint or facial recognition methods. The service addresses the sharp 300% increase in online fraud cases in India over the past two years by offering a frictionless, tokenized payment process, ensuring that payment details remain secure.

Commitment to India’s Digital Payment Ecosystem

Mastercard’s choice of India reflects the country’s evolving payment landscape and aligns with the Reserve Bank of India’s goals for a resilient payment infrastructure. The Payment Passkey Service aims to reduce cart abandonment and boost consumer trust in digital payments by eliminating the need for passwords or OTPs. Key partners, including Axis Bank and Juspay, have expressed optimism about the service’s potential to improve payment success rates and overall e-commerce experiences.

A Step Towards a Token Economy

The Payment Passkey Service is part of Mastercard’s broader vision for a tokenized future in digital payments. With plans for a global rollout, this service sets a new standard in online transaction security, aligning with global industry standards like EMVCo and the FIDO Alliance. The launch comes as India’s digital payments market, projected to reach US$254.60 billion in 2024, sees a surge in transaction volumes and a corresponding rise in fraud, highlighting the urgent need for enhanced security solutions like this one.

Key Points About Mastercard

Founded: 1966 as Interbank Card Association; renamed Mastercard in 1979.

Headquarters: Purchase, New York, USA.

Industry: Global payments technology.

Core Business: Facilitating electronic payments and digital transactions between consumers, businesses, and financial institutions.

Global Reach: Operates in over 210 countries and territories.

Key Products: Credit cards, debit cards, prepaid cards, and payment services.

Innovation Focus: Tokenization, biometric authentication, AI, and blockchain for enhancing payment security and efficiency.

Revenue: $22.23 billion in 2023.

Notable Initiatives: Payment Passkey Service, Priceless Experiences program, and commitment to financial inclusion globally.

Recent Developments: Global debut of Payment Passkey Service in India, aiming to enhance online transaction security with biometric authentication.