Mastercard Incorporated (NYSE:MA) launched its new Payment Passkey Service globally to enhance online shopping security and convenience.

The Mastercard Payment Passkey Service is designed for online and remote tokenized transactions, reducing fraud and improving approval rates.

By combining tokenized payment credentials with biometric authentication, Mastercard integrates industry standards from EMVCo, the World Wide Web Consortium, and the FIDO Alliance to enhance and secure the checkout process.

The service uses passkeys and tokenization to secure online transactions, ensuring no financial account data is shared with third parties, making it ineffective for fraudsters and scammers.

Initially piloted in India with major payment aggregators like Juspay, Razorpay, and PayU and online merchants like BigBasket and Axis Bank, the service aims to give consumers more control and peace of mind during online checkouts.

According to the Reserve Bank of India's 2023-2024 Annual Report, fraud cases have increased by nearly 300% over the past two years in India.

Jorn Lambert, chief product officer at Mastercard, said, "Through innovative technology that enhances security and convenience, we're creating a more transparent commerce ecosystem for all. As we continue to lead the way in digital payments, our commitment to achieving a tokenized future is stronger than ever."

After the initial pilot in India, Mastercard plans to expand its Payment Passkey Service to more consumers and financial institutions globally in the coming months.

This week, Mastercard partnered with Rellevate, Inc., a fintech company providing flexible money access, to expand payments and disbursement services in the public sector.

Investors can gain exposure to the stock via iShares U.S. Financial Services ETF (NYSE:IYG) ticked and Financial Select Sector SPDR Fund (NYSE:XLF).

Price Action: MA shares closed lower by 0.67% at $471.80 on Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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