Mastercard Launches Payment Passkey Service Pilot in India

Mastercard is set to introduce its new Payment Passkey Service in India, partnering with major online merchants, banks, and payment aggregators for a pilot program. This initiative aims to replace traditional one-time passwords (OTPs) with passkeys and tokenisation, enhancing the security and efficiency of online transactions.

Key players in the pilot include BigBasket, Axis Bank, Juspay, Razorpay, and PayU. The service allows shoppers to choose their Mastercard or a securely stored card during online checkout and confirm payments through biometric authentication, such as face scans, fingerprints, or PINs. Payments are processed instantly once verified, with no financial data shared with third parties.

Mastercard selected India for the pilot due to the country’s rapidly growing payment ecosystem and advanced tokenisation market, aligning with the Reserve Bank of India’s push for a more secure and resilient payment system. If successful, Mastercard plans to roll out the Payment Passkey Service to more consumers and financial institutions worldwide in the coming months.

This move comes as Mastercard also announces plans to cut approximately 1,000 employees as part of broader organisational changes.