Daily Current Affairs : 31-August-2024

Mastercard has these days released its Payment Passkey Service in India, providing a new, steady, and clean manner for customers to manage online transactions. This service aims to simplify the payment process while offering a higher level of security. Unlike conventional online payment methods, which rely on one-time passwords (OTPs) or passwords, Payment Passkey uses advanced technology to ensure more secure, faster, and smoother transactions.

What is Payment Passkey Service?

The Payment Passkey Service is a secure, non-OTP-based solution that enhances the security of online payments. Here’s how it works:

  • Authentication Method: Instead of relying on passwords or OTPs, the service uses biometric authentication (such as fingerprints or facial recognition) or a PIN stored on the user’s device. This makes it easier for users to confirm transactions without needing to remember complex passwords.
  • Tokenization: The service uses tokenization technology, which replaces sensitive financial information (like credit card numbers) with secure, encrypted tokens. This ensures that your actual financial data is never exposed during the transaction.
  • Transaction Process:
    • When making an online purchase, customers select their Mastercard at checkout.
    • To confirm the payment, they authenticate the transaction using their device’s biometric features (like a fingerprint or facial scan).
    • Once the authentication is successful, the transaction is completed almost instantly.
Mastercard’s Payment Passkey Service: What You Should Know
Courtesy: The Economic Times

Benefits of Payment Passkey Service

Mastercard’s Payment Passkey Service offers several key benefits to users:

  • Simplified Transactions: There is no need to remember or enter passwords and OTPs. Biometric authentication makes the payment process quicker and more convenient.
  • Enhanced Security: Since financial data is never shared during the transaction and is replaced by secure tokens, the risk of fraud is significantly reduced.
  • Faster Checkout: With the streamlined process, online shoppers can complete their purchases more quickly, improving the overall shopping experience.

Important Points:

  • Mastercard’s Payment Passkey Service launched in India for secure and convenient online transactions.
  • Key Features of Payment Passkey:
    • Non-OTP-based Solution: Eliminates the need for one-time passwords (OTPs) or passwords.
    • Biometric Authentication: Uses fingerprint scans, facial recognition, or a device PIN for user authentication.
    • Tokenization: Replaces sensitive financial data with encrypted tokens, enhancing security.
  • Transaction Process:
    • Select Mastercard at checkout.
    • Authenticate payment using biometric features (fingerprint or facial scan) or PIN.
    • Complete the transaction instantly once authentication is successful.
  • Benefits:
    • Simplified Transactions: No need to remember or enter passwords or OTPs.
    • Enhanced Security: Secure tokens protect user financial information, reducing the risk of fraud.
    • Faster Checkout: Streamlined process speeds up online shopping, making it more efficient.

Why In News

Mastercard has debuted its Payment Passkey Service in India, offering a secure, non-OTP-based solution for online transactions, aiming to enhance user convenience and reduce the risk of fraud in digital payments.

MCQs about Mastercard’s Payment Passkey Service

  1. What is the main feature of Mastercard’s Payment Passkey Service?
    A. It requires users to enter passwords and OTPs.
    B. It uses biometric authentication or PINs instead of passwords or OTPs.
    C. It only works with credit cards.
    D. It replaces physical cards with digital wallets.
    Correct Answer: B. It uses biometric authentication or PINs instead of passwords or OTPs.
    Explanation: The Payment Passkey Service uses biometric authentication (fingerprints, facial recognition) or a PIN stored on the user’s device, eliminating the need for passwords or OTPs.
  2. Which technology does Mastercard’s Payment Passkey Service use to enhance security during transactions?
    A. Blockchain technology
    B. Encryption
    C. Tokenization
    D. Data compression
    Correct Answer: C. Tokenization
    Explanation: The Payment Passkey Service uses tokenization to replace sensitive financial data (like credit card numbers) with encrypted tokens, ensuring that financial information is never exposed.
  3. How does the transaction process work in Mastercard’s Payment Passkey Service?
    A. Users manually enter passwords at checkout.
    B. Users authenticate transactions through OTPs sent to their phones.
    C. Users select their Mastercard, authenticate with biometrics or PIN, and complete the transaction.
    D. Users confirm their identity via email before making a payment.
    Correct Answer: C. Users select their Mastercard, authenticate with biometrics or PIN, and complete the transaction.
    Explanation: The process involves selecting the Mastercard at checkout, authenticating with biometrics or PIN, and completing the transaction after successful authentication.
  4. What is one key benefit of using Mastercard’s Payment Passkey Service for online shopping?
    A. It allows users to pay with physical cash.
    B. It eliminates the need for biometric authentication.
    C. It speeds up the checkout process by removing the need for passwords and OTPs.
    D. It limits transactions to specific types of purchases.
    Correct Answer: C. It speeds up the checkout process by removing the need for passwords and OTPs.
    Explanation: Payment Passkey simplifies the checkout process by removing the need for users to enter passwords or OTPs, allowing for faster and more efficient transactions.

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