Payment Passkey Service

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Context:

Mastercard announced the worldwide launch of its new Payment Passkey Service to make online shopping more secure and easier.

Payment Passkey Service( PPS)

• It uses device-based biometric authentication methods such as fingerprints or facial scans, but for an entirely new purpose: to streamline online shopping experiences.
• By replacing traditional passwords and OTPs, the Mastercard Payment Passkey Service makes transactions not only faster, but also more secure against fraud and scams.

How is it safe and secure?

• Alternative access: In case of loss or forgotten passwords or One time passwords (OTPs), the PPS will ensure access with fingerprints and facial scans.
• OTP vulnerability: OTPs are being increasingly vulnerable to online scams such as phishing, SIM swapping and message interception.

Significance for India

• In India, the incidence of fraud cases has surged by nearly 300 per cent in the last two years.
• Card and online payment fraud, which includes other digital payment methods, crossed 700 per cent, according to RBI’s Annual Report for 2023-24.
• Global launch of the Mastercard Payment Passkey Service pilot in India reflects recognition of India’s global leadership in tokenization.
• Payment passkeys will offer a secure and easier way for cardholders to authenticate during e-commerce transactions on web or merchant apps.

What is card tokenization?

• Tokenization refers to the replacement of actual card details with a unique alternate code called the ‘token’, which shall be unique for a combination of card, token requester, (i.e. the entity which accepts requests from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and the device.

Read how India carried out card tokenization here:

https://www.iasgyan.in/daily-current-affairs/tokenisation-12

https://www.thehindubusinessline.com/money-and-banking/mastercard-chooses-india-for-world-debut-of-payment-passkey-service/article68582167.ece

PRACTICE QUESTION Q. Consider the following statements regarding Payment Passkey Service( PPS) recently seen in news: 1) It uses device-based one time passwords for payment methods. 2) It will make online shopping more secure and easier. 3) There is no requirement of biometric authentication in the PPS. How many of the above statement is/are correct? A.Only one B.Only two C.All Three D. None Answer: A Explanation: Statement 1 and 3 are incorrect: ●It uses device-based biometric authentication methods such as fingerprints or facial scans, but for an entirely new purpose: to streamline online shopping experiences. Statement 2 is correct: ●By replacing traditional passwords and OTPs, the Mastercard Payment Passkey Service makes transactions not only faster, but also more secure against fraud and scams.