
During a keynote at the Global Fintech Fest in Mumbai, Mastercard announced the global launch of its Payment Passkey Service, designed to enhance online shopping security and convenience. India has been selected as the pilot market, with prominent local partners including Juspay, Razorpay, PayU, Axis Bank, and online merchant bigbasket. This innovative service aims to provide millions of consumers with greater control and peace of mind during online checkouts.
Despite the convenience of one-time passwords (OTPs), their vulnerability to online scams such as phishing and SIM swapping has become a growing concern. According to the Reserve Bank of India’s 2023-2024 Annual Report, fraud cases have surged nearly 300% over the past two years. Mastercard’s Payment Passkey Service addresses these issues by leveraging device-based biometric authentication methods—such as fingerprints or facial scans—to streamline and secure online transactions. This approach eliminates the need for traditional passwords and OTPs, making transactions faster and more secure.
The Mastercard Payment Passkey Service uses tokenization and passkeys to protect consumers during online checkout, ensuring that no financial account data is shared with third parties. This innovation enhances the security and efficiency of online shopping, offering a seamless experience for consumers. To use the service, shoppers select their Mastercard at checkout and confirm the payment using their device’s biometric authentication features, such as a fingerprint, face scan, or PIN.
“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, chief product officer at Mastercard. “Through innovative technology that enhances security and convenience, we’re creating a more transparent commerce ecosystem for all. As we continue to lead the way in digital payments, our commitment to achieving a tokenized future is stronger than ever.”
India, with its rapidly expanding payment ecosystem and advanced tokenization market, is well-positioned to embrace payment passkeys and enhanced biometric authentication, aligning with the Reserve Bank of India’s goal for a safer, more resilient payment system. For businesses, the service reduces cart abandonment and fraud, while consumers benefit from faster checkouts and greater peace of mind.
The Mastercard Payment Passkey Service, designed for online or remote tokenized transactions, significantly reduces fraud and increases approval rates by combining payment credential tokenization with seamless biometric authentication. The service aligns with industry standards from EMVCo, the World Wide Web Consortium, and the FIDO Alliance, ensuring a fast and secure checkout experience.
Following the pilot program in India, Mastercard plans to roll out the Payment Passkey Service to more consumers and financial institutions globally in the coming months.
Partner Statements:
- Axis Bank: “We are excited to partner with Mastercard to pilot its Payment Passkey Service, providing our customers with a non-OTP-based solution for transaction management. This will enhance security and offer a more engaging in-app experience for our users,” said Sanjeev Moghe, President and Head of Cards & Payments at Axis Bank.
- Juspay: “This industry-first proof of concept underscores our commitment to empowering merchants with innovative technology that improves the e-commerce experience. We believe this solution will help our merchant customers improve payment success rates and overall sales,” said Sheetal Lalwani, Chief Operating Officer and Co-Founder of Juspay.
- PayU: “As India’s payment ecosystem matures, the demand for advanced and secure payment solutions grows. Integrating Mastercard’s Payment Passkey Service is a pivotal step in enhancing payment security and user experience,” said Manas Mishra, Chief Product Officer at PayU.
- Razorpay: “We are thrilled to join forces with Mastercard to introduce the Payment Passkey Service in India, a groundbreaking initiative that enhances transaction security and user experience in remote commerce,” said Arif Khan, Chief Innovation Officer of Razorpay.
About Mastercard
Mastercard is a global technology company in the payments industry, dedicated to connecting and powering an inclusive, digital economy that benefits everyone, everywhere. With secure data and networks, partnerships, and innovative solutions, Mastercard helps individuals, financial institutions, governments, and businesses realize their greatest potential. Operating across more than 210 countries and territories, Mastercard is committed to building a sustainable world that unlocks priceless possibilities for all.