EU rules to boost biometric payments, Mastercard
Mastercard is predicting a significant increase in the use of biometric technology to authenticate who is paying as new EU regulations come into place next September.
Currently just 1-2% per cent of online transactions require cardholder authentication to complete a transaction (mostly likely using a password), but this is set to rise to up to 25% from next autumn. The European rules increase the number of transactions subject to two factors of authentication by the payer, known as Strong Customer Authentication (SCA), and that will include something you are, such as a fingerprint.
This will mostly impact card payments made over the internet – be it a desktop or mobile purchase. It will also apply to some contactless transactions, as a periodic check to ensure the card is being used by its rightful owner. However, in-store chip and pin transactions are already complaint and use two factors.
Ajay Bhalla, President Global Enterprise Risk and Security, Mastercard, says: “The use of passwords to authenticate someone is woefully outdated, with consumers forgetting them and retailers facing abandoned shopping baskets. 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.”