Mastercard: Biometric payments to take centre stage under PSD2
05 July 2018 | 12693 views | 4
Mastercard is forecasting a bright future for biometric technology, as new rules on strong customer authentication under PSD2 come into force across Europe.
The European rules aim to tackle online fraud, by increasing the number of transactions subject to two factors of authentication by the payer. While in-store transactions using Chip and PIN technology already comply, the biggest impact will be felt in online shopping, where consumers are already overwhelmed by password fatigue.
With regards to card payments, currently just one-to-two per cent of online transactions require cardholder authentication to complete a transaction, but this is set to rise to up to 25% from next autumn, says Mastercard.
Ajay Bhalla, president global enterprise risk and security, Mastercard points to the card scheme's implementation of selfie payments and fingerprint cards, alongside changing consumer attitudes, as scene setters for a biometric futures.
“The use of passwords to authenticate someone is woefully outdated, with consumers forgetting them and retailers facing abandoned shopping baskets," he says. "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.”