#Mexico #Mexico City #Mastercard #Payment Passkey #Biometrics

A Shift Towards Biometric Payment Solutions in Latin America

In a recent survey conducted by Mastercard, it has been revealed that a significant proportion, 85%, of consumers in Latin America prefer biometric authentication methods over traditional passwords for online transactions. This change indicates a growing demand for secure and user-friendly methods in handling digital payments.

To meet this surge in consumer preference, Mastercard is introducing a new service called Payment Passkey. This innovative service will leverage device-based biometrics, such as fingerprints and facial recognition, effectively replacing traditional methods like one-time passwords (OTPs). Payment Passkey is set to launch in January and will be rolled out in collaboration with Brazil's payment platform Sympla and Yuno, a payment orchestrator founded by Colombian entrepreneurs Juan Pablo Ortega and Julián Núñez.

Juan Pablo Ortega shared insights on the service, emphasizing that integrating Payment Passkeys aligns seamlessly with Yuno’s strategy aimed at adopting innovative solutions quickly. Ortega noted, "Being the first orchestrator to deploy them with Mastercard demonstrates our commitment to market leadership. By simplifying authentication and reducing friction in the payment process, payment passkeys drive higher conversion rates, more satisfied customers, and a better payment experience for everyone."

Addressing Security Concerns

As online scams such as phishing, SIM swapping, and message interception continue to proliferate, Mastercard recognizes the urgency to revamp online payment systems. The introduction of Payment Passkey aims to mitigate the risks associated with current security practices while making the consumer experience more accessible. Silvana Hernández, Executive Vice President of Core Products for Mastercard Latin America and the Caribbean, stated, "Mastercard is committed to building a payment experience where convenience and security coexist. Partnering with Sympla and Yuno marks a significant step forward in advancing payment authentication in the region."

The Importance of Tokenization Technology

Further enhancing the Payment Passkey service is its use of tokenization technology, which substitutes sensitive primary account numbers (PANs) with a secure token. This means that even in the event of a data breach, the card information remains protected, rendering it useless to potential fraudsters.

The adoption of biometric technology as a preferred method of authentication is not just limited to Latin America; globally, 90% of consumers view it as the safest option. Marina Teixeira, product manager at Sympla, echoed the sentiments about the service's importance, reinforcing Sympla’s commitment to security and innovation in Brazil's vibrant payment market.

As e-commerce continues to surge, the demand for reliable and secure payment solutions grows proportionately. The Latin America Ecommerce Forecast hints at retail sales reaching an impressive $180 billion in 2024, and with such projections, it is vital for payment systems to evolve.

In conclusion, Mastercard's initiative to introduce Payment Passkeys showcases a proactive approach to securing digital payments in an ever-changing technological landscape. This move not only enhances security for consumers but also aligns with the increasing demand for efficient transactions in Latin America's flourishing e-commerce sector.