Mastercard (NYSE:) will begin testing in Brazil in January the tool that will allow customers to pay for purchases made online without having to enter passwords.The so-called Passkey will initially be used by the online sales platform Sympla and the payments company Yuno. In a second phase the solution will be extended to more companies.
Passkey uses customer biometric data collected from the device on which they make purchases to confirm their identity and cancel transactions. This way the buyer does not need to enter their card password when making a purchase, which Mastercard says makes the process safer and also faster.
The Mastercard platform uses so-called tokenization, i.e. the creation of a new credential from an existing one. In practice, this means that the establishment does not receive the customer’s card information, but rather a credential generated by the customer that is used only for that transaction. This is a model similar to virtual cards, but more complex, and which guarantees greater security of the payment method.
For e-commerce companies, the new product should help increase sales and reduce so-called cart abandonment, which occurs when a customer gives up on a purchase during checkout. One of the reasons that leads to this abandonment during the payment phase is the need to enter the card data, from the number to the password.
The technology is a bet by Mastercard to achieve the goal of eliminating, by 2030, the use of passwords in payments with cards issued by the company. This goal is global and Brazil, due to the high degree of digitalization of payments, is one of the countries where the company has already started testing solutions.
In the country, for example, the company participated in the implementation of Click to Pay, a sort of “first generation” of Passkey in which the customer only needs to re-enter the card verification code. “Today, 80% of Mastercard card transactions at Sympla are Click to pay,” says the company’s vice president of Products and Services in Brazil, Leonardo Linares.
According to him, Mastercard is in talks with other companies to also offer payments via Passkey.The work takes place on multiple fronts, as it involves both online retail and issuing banks. “Mastercard plays the role of orchestrator of the ecosystem,” he says.
The solution will be offered by the company through agreements with the issuing banks. This is a model similar to Click to Pay, in which each bank affiliated with the company offers the customer the possibility of registering the card in the database.
What impact coudl Mastercard’s Passkey innovation have on the future of e-commerce?
Interview: Mastercard’s Passkey Innovation in Online Payments
Editor at Time.news: Today, we have the pleasure of speaking with Leonardo Linares, the Vice President of Products and Services at Mastercard brazil. We’ll discuss the exciting new Passkey tool that Mastercard is testing in Brazil, which aims to revolutionize online payment processing. Thank you for joining us,leonardo!
Leonardo Linares: Thank you for having me. I’m excited to share insights about Passkey and its potential impact on both customers and e-commerce businesses.
Q: Can you explain what Passkey is and how it effectively works?
Leonardo Linares: passkey is an innovative payment solution that enables customers to make online purchases without entering thier card passwords. Rather, it uses biometric data from the customer’s device to confirm their identity during transactions. This not only speeds up the payment process but also enhances security, as there’s no actual sharing of card details with the merchants.
Q: You mentioned biometric data; how does Mastercard ensure the privacy and security of this details?
leonardo Linares: Security is a top priority for us. The biometric data used for Passkey verification is stored securely on the customer’s device and is never transmitted over to merchants. Additionally, Passkey employs tokenization, which generates a unique credential for each transaction, ensuring that the merchant does not receive any sensitive card information. This reduces the risk of fraud and reinforces customer trust.
Q: What are the primary benefits of Passkey for e-commerce businesses?
Leonardo Linares: The new passkey technology can significantly boost sales for e-commerce companies. One of the challenges they face is cart abandonment—when customers abandon purchases during checkout often due to the lengthy process of entering card information. By simplifying the purchase process with Passkey, we aim to reduce this phenomenon and increase conversion rates.
Q: Why has Mastercard decided to launch Passkey in Brazil specifically?
Leonardo Linares: Brazil is one of the most digitally advanced countries regarding payment solutions, making it an ideal testing ground for innovations. We have seen a growing acceptance of digital payment methods, and with our past success from the earlier Click to Pay feature—which is similar to Passkey—we’re optimistic about the adoption of this new technology in the Brazilian market.
Q: Can you tell us about future plans for Passkey? What does the rollout look like?
leonardo Linares: Initially, we’ll be testing Passkey with the online sales platform Sympla and payment company Yuno starting in January. Following this, we plan to expand the solution to a broader range of e-commerce companies.Our ultimate goal is to help eliminate the use of passwords in card payments entirely by 2030.
Q: How does this innovation align with Mastercard’s long-term vision for payments?
Leonardo Linares: Our vision is to create a seamless and secure payment experience for consumers and merchants alike. By reducing friction in transactions and enhancing security, technologies like Passkey align perfectly with our mission to lead in the digital payments space. We are also actively collaborating with various banks and retailers to create a robust ecosystem that supports these advancements.
Q: What practical advice can you give to consumers and businesses regarding the adoption of this new tool?
Leonardo Linares: For consumers, being open to biometric payment options and staying informed about privacy measures will be crucial in this transition.For businesses, investing in the technology needed to integrate Passkey and educating their customers on its benefits will be key steps toward unlocking increased sales and a better checkout experience.
Editor at Time.news: Thank you, Leonardo, for sharing these valuable insights into the future of payments with passkey. It’s clear that Mastercard is making notable strides towards enhancing online payment solutions.
Leonardo Linares: Thank you! we’re excited about what’s ahead and how Passkey can shape the future of transactions.
