Mastercard unleashes new era of biometric payments

Mastercard unleashes new era of biometric payments

No more fumbling for your phone or hunting for your wallet when you have your hands full – the next generation of in-person payments will only need a quick smile or wave of your hand. The trusted technology that uses your face or fingerprint to unlock your phone can now be used to help consumers speed through the checkout. With Mastercard’s new Biometric Checkout Program, all you will need is yourself. 

As part of a global launch announced earlier today, the program represents a first-of-its-kind technology framework to help establish standards for new ways to pay at stores of all sizes, from major retailers to mom-and-pop shops. The program outlines a set of standards that banks, merchants and technology providers adhere to, helping to ensure the security and privacy of personal data when people pay biometrically.  

Globally, 74% of consumers have a positive attitude towards biometric technology, and the market for contactless biometrics technology is projected to reach $18.6 billion by 2026. 

“The way we pay needs to keep pace with the way we live, work and do business, offering choice to consumers with the highest levels of security,” said Ajay Bhalla, president, Cyber & Intelligence at Mastercard. “Our goal with this new program is to make shopping a great experience for consumers and merchants alike, providing the best of both security and convenience.”

Transforming the checkout experience 

Participants in Mastercard’s Biometric Checkout Program offer consumers the option to conveniently enroll into their biometric checkout services, in store or at home, through a merchant or identity provider app. Once enrolled, there is no need to slow down the checkout queue searching through their pockets or bag. Consumers can simply check the bill and smile into a camera or wave their hand over a reader to pay. The new technology ensures a fast and secure checkout experience, whilst also empowering consumers to choose how they want to pay.  

For merchants, the benefits are also considerable, from faster transaction times and shorter lines to greater hygiene and heightened security. The payments system can be integrated with loyalty programs and personalized recommendations to help consumers find products they might be interested in based on previous purchases.

Mastercard is working with partners including NEC, Payface, Aurus, PaybyFace, PopID and Fujitsu Limited to ensure the launch and scale of these types of new checkout capability around the globe, adhering to an overarching framework of minimum standards, specifications and guidelines that address security, biometric performance level, and data protection in the context of in-store biometric payments. 

The first pilot will be launched this week in Brazil with Payface and St Marche. The pilot will see Payface’s technology implemented across five St Marche supermarkets in São Paulo. Consumers visiting these supermarkets are able to enroll their face and payment information through the Payface app, and once registered, they can simply smile to pay at the checkout without a card or mobile device.  Future pilots are being planned for roll-out in the Middle East and Asia.

“We’ve been developing Payface since 2018, with a mission to help transform the way people pay – improving the experience, without compromising on security,” said Eládio Isoppo, chief executive officer, Payface. “This partnership with Mastercard is a welcome step forward for us and will enable our technology to be used by more merchants and consumers, making shopping easier and bringing the joy of a smile to payments.”

Building on a legacy of rich innovation

Biometric Checkout is Mastercard’s next step to support the evolution of payments, alongside a suite of recent innovations, such as Shop Anywhere, Enhanced Contactless (ECOS) and Cloud Point of Sale, which have been rolled out to provide consumers and merchants with frictionless, flexible and secure in-store experiences. 

Mastercard has long pioneered biometrics – instore and online – as a secure way to verify identity, replacing the password with the person. The effort, which builds on the EMV 3-D Secure standard, enables people to shop and pay through biometric-powered payment cards, devices and wearables. Biometrics have also featured in confirming online shoppers’ identities through “selfie pay” and online, leveraging key standards such as FIDO (Fast Identity Online). 

As this technology is increasingly adopted across the world, Mastercard is helping ensure all stakeholders maintain the highest levels of security and privacy to protect consumers. The Biometric Checkout Program is governed by Mastercard’s principles for data responsibility, reinforcing that consumers have the right to control how their personal data is shared and benefit from its use. 

Mastercard announces collaboration with NDID Thailand on cross-border ID

Mastercard announces collaboration with NDID Thailand on cross-border ID

Mastercard and NDID Thailand have signed a Memorandum of Understanding (MOU) that aims to foster cooperation on cross border Digital identity.

Chris Reid, Executive Vice President – Identity solutions said “When Mastercard laid out its vision for digital identity back in 2019, we stated that there is no single government, technology company, financial institution, or even industry sector in today’s interconnected world that can effectively deliver a global digital identity service by itself.  That statement still holds true today.  That is why we placed collaboration at the core of our design for Mastercard’s global digital identity network.

We recognize that how identity works in Thailand is different from how it works in Singapore, different from Australia, different from the United States. For this reason, we have developed a system that supports national standard. But offers global interoperability building on more than 50 years of experience working with partners to develop a payments network that does just that.”

Mr. Boonsun Prasitsumrit, Chief Executive Officer of National Digital ID Co., Ltd., Thailand revealed that NDID is studying the linkage between two platforms in several areas such as the technical aspect, contractual, legal, and regulatory aspects, as well as permission granting processes from regulatory bodies. The occasion marks the first time in the world where an MoU was signed to study cross-border digital ID, where some of APAC countries is expected to be the pilot market for bank account opening and mobile phone registration. The partnership will help create the innovation that will be beneficial and create ease of use and a good experience for the customers of both Mastercard and NDID.

“As we launch ID in countries around the world, our partners – merchants, airlines, banks, governments are integrating ID as a convenient, smart and secure way of on-boarding new users and interacting with existing ones to offer innovative products and services. Many of those providers operate in multiple jurisdictions or have legacy processes for authentication and identity verification. By bringing the user-base of NDID onto our network it means our partners can offer the same great experience regardless of whether the user is from Thailand or from any other country. They can be confident that they meet their regulatory obligations with the same high levels of assurance, trust and reliability. When digital identity issued in one country is accepted in another country, seamlessly and securely, it becomes a powerful driver of economic growth.” said Rajat Maheshwari, Vice President – Digital Identity at Mastercard.

 

Mastercard brings Digital Identity to exams in Brazil

Mastercard brings Digital Identity to exams in Brazil

Mastercard, Amigo Edu and idwall have partnered to help students simply and securely prove their identity when taking virtual exams. We recognize that digital interactions can be complex – often rife with friction, risk and lack of control for those involved. For example, the typical person now manages 100 passwords. On the flip side, identity fraud is one of the largest and growing challenges businesses and service providers are facing.

“Even as the world has gone digital, proving who we are is often still an analog process. It shouldn’t have to be that way,“ said Ajay Bhalla, president for Cyber & Intelligence at Mastercard. “With digital identity, consumers can unlock new and enhanced experiences as they interact with businesses, service providers and their communities – making it safer and more efficient to shop online, open a bank account, file taxes or book travel.”

Students will create a digital identity in idwall’s Meu ID app, which verifies their identity information. Following this, individuals can easily prove their identity before taking exams such as University Admission Exams, all through Amigo Edu’s platform. Mastercard provides a simple and flexible API-based integration for both organizations to connect to the ID network and enable the secure sharing of the verified identity credentials.

Once a student creates their digital identity, they will be able to use it across their academic life and beyond. For example, their digital identity can help them open a bank account, purchase an age-restricted product without proving their date of birth, or rent a car without having to hand over their driver’s license.

“With this partnership, we accelerate our ambition to create a global digital identity for Latin America.  This will create a new way for companies to implement digital identity and provide more privacy and security for users’ personal identity data. We look forward to expanding our app into different services as we aim to continuously build, through technology, a trustful and more inclusive society for everyone”, said Lincoln Ando, CEO of idwall.

“By combining our respective technologies and capabilities, we’re providing safe and easy solutions for students and the wider education sector in Brazil,” said José Roberto Dantas, CEO of Amigo Edu. “COVID-19 altered the education landscape, creating greater opportunities for hybrid learning, while also presenting challenges – like proving your identity. In 2020 alone, we’ve had half a million students participate in a variety of exams and we’re thrilled to be adding a digital identity component to further ensure security for all parties.”

Digital identity represents a new way for educational institutions to approach digital transformation and learning in the current environment. It makes it easier for institutions to embrace remote and hybrid learning and ensure learning can be facilitated if a student’s circumstances change. Overall, it improves access to education, skills and training for those who may be geographically, socially or otherwise excluded.

Additionally, digital identity provides the necessary flexibility and focus on user privacy to suit the needs of a contemporary student, wherever they’re based and whatever their educational level. It also eases the administrative burden on the institutions and helps drive an improvement in cybersecurity in a sector where it’s one of the major risk factors. 

Digital identity is not a digitized version of a passport, driver’s license or national ID card, or a new style authentication token, but much more than that. It provides a simple and secure way to prove identity digitally, giving individuals more control and privacy, while enabling businesses and organizations to deliver services with less friction and more confidence.

The company’s recent identity activity has included initiatives around the world across the travel, healthcare, education and telecoms industries – including Optus and Deakin University in Australia, the Good Health Pass Collaborative, and partnerships with the International Chamber of Commerce, Microsoft and Samsung. Following these efforts in Brazil, additional partnerships will be introduced globally in 2022.