Unlike traditional one-time passwords (OTPs), which have become increasingly vulnerable to cyber threats like phishing, SIM swapping, and message interception
Mastercard has chosen India as the launch site for its new Payment Passkey Service, marking a significant milestone in the global payments landscape. This innovative service aims to transform the way online transactions are conducted by enhancing both security and convenience.
The Payment Passkey Service will initially be piloted in collaboration with some of India’s leading payment players. Key partners include payment aggregators such as Juspay, Razorpay, and PayU, alongside major online merchants like bigbasket and prominent banks like Axis Bank, Mastercard announced.
Unlike traditional one-time passwords (OTPs), which have become increasingly vulnerable to cyber threats like phishing, SIM swapping, and message interception, Mastercard’s Payment Passkey Service uses biometric data stored on a user’s device to authenticate transactions. This approach not only streamlines the checkout process but also introduces a more secure method that is expected to be much harder for fraudsters to compromise.
The service, unveiled at the Global Fintech Fest in Mumbai, leverages biometric authentication and tokenization to provide a safer and more efficient online shopping experience. “By introducing the Mastercard Payment Passkey Service in India, we’re advancing secure online checkout and our vision for a token economy,” said Jorn Lambert, Mastercard’s chief product officer. “Through innovative technology that enhances security and convenience, we’re creating a more transparent commerce ecosystem for all.”
Although Mastercard announced its Payment Passkey service as part of its Biometric Authentication Service in January 2024, the rollout in India marks the first time it has been implemented in any of its operating markets.
India’s digital payment ecosystem has been rapidly expanding, driven by the government’s push for a cashless economy and the widespread adoption of the Unified Payments Interface (UPI). UPI has revolutionized digital transactions in India, providing a real-time payment system that has quickly gained popularity among both consumers and merchants.
As of 2024, UPI transactions have exceeded 10 billion per month, dominating the digital payments market and presenting a competitive challenge to traditional payment networks like Mastercard and Visa.
“Mastercard’s decision to introduce its Payment Passkey service first in India is a strategic move that aligns with several key market trends and opportunities,” said Pranati Dave, practice director at Everest Group. “India is one of the world’s fastest-growing digital payment markets, with a rapidly expanding user base for online and mobile transactions.”
The launch of Mastercard’s Payment Passkey Service in India is expected to further strengthen the country’s position as a global leader in digital payments, offering consumers a safer and more convenient way to conduct online transactions.
