Mastercard is set to introduce Payment Passkey in Latin America, a new service designed to streamline secure online payments using device-based biometrics such as fingerprints or facial scans. This initiative will replace traditional methods like one-time passwords (OTPs) and will be available starting in January through partnerships with Brazilian platform Sympla and payment orchestrator Yuno.
Research by Mastercard indicates that 85% of consumers in Latin America prefer biometric authentication for online transactions, highlighting a strong market demand for this technology. The adoption of Payment Passkey aims to simplify e-commerce, revolutionize the consumer experience, and reduce vulnerability to online scams like phishing and SIM swapping.
The service employs tokenization technology to ensure card information is not shared with third parties, enhancing data security. This innovation is expected to benefit e-commerce businesses by reducing abandoned shopping carts and offering issuers a new way to authenticate cardholders and mitigate fraud risk in a region where retail sales are projected to reach $180 billion in 2024.
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