FB pixel

PSD2 to drive biometric adoption for online payment authentication: Mastercard

 

With the number of online transactions requiring cardholder authentication to increase from roughly one or two percent today to as many as 25 percent next autumn, PSD2 will drive a rapid increase in consumer biometrics use, according to research by Mastercard.

PSD2 came into effect on January 13, 2018, and its Strong Customer Authentication (SCA) standards requiring two-factor authentication for online payments across Europe take effect in September, as part of the EU’s plan for a digital single market.

“The use of passwords to authenticate someone is woefully outdated, with consumers forgetting them and retailers facing abandoned shopping baskets,” says Mastercard President of Global Enterprise Risk and Security Ajay Bhalla. “In payments technology this is something we’re closing in on as we move from cash to card, password to thumbprint, and beyond to innovative technologies such as artificial intelligence. It’s far easier to authenticate with a thumbprint or a selfie, and it’s safer too.”

Bhalla suggests that changing consumer attitudes and Mastercard’s implementation of selfie payments and fingerprint cards are setting the stage for greater adoption of biometrics.

On the heels of PSD2 coming into effect, Mastercard announced it will provide biometric authentication for European online shoppers starting in April 2019 to satisfy the regulation’s SCA requirements. Mastercard has been conducting several trials of biometric payment cards, and expanding the coverage of its Identity Check app to new markets to enable biometric authentication in person and online.

BioCatch recently pitched behavioral biometrics as the best way to meet the strong authentication requirements of PSD2 while protecting against the potential vulnerability of connections between third-party payment providers and financial institutions.

Article Topics

 |   |   |   | 

Latest Biometrics News

 

50-in-5 DPI campaign adds Jamaica and Mexico

The 50-in-5 campaign which is a collaborative effort aimed at helping countries of the Global South to design, develop, and…

 

Swedish police seek mobile fingerprint readers in $7.6M tender

The Swedish police have issued a tender seeking mobile biometric fingerprint readers with integrated passport readers. The estimated value of…

 

Banks struggle to fight fraud with AI, reusable ID could help

The vast majority of financial institutions – around 90 percent – are leaning on some form of AI to combat…

 

Regulator presses TFH for details on World biometric data collection in Indonesia

Indonesia government officials are exploring the potential misuse of biometric data and may require the deletion of 500,000 iris data…

 

Ghana’s new identification authority board to focus on public trust, inclusive service delivery

The National Identification Authority of Ghana (NIA) has new appointees on its governing board with a call on them to…

 

Biometrics has been drafted into the battle between AI fraud and AI defenses

Biometrics implementations for public services are expanding in countries around the world, even as AI-enabled fraud and deepfakes threaten online…

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Biometric Market Analysis

Most Viewed This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events