MasterCard, Visa team up for a less complex authentication system
MasterCard and Visa have collaborated to create a new authentication system that would cease the need for customers to enter passwords as a means of verifying their identity when making online payments.
MasterCard and Visa’s current online authentication systems dubbed ‘MasterCard SecureCode’ and ‘Verified by Visa’ respectively are based on the 3D Secure protocol, which require users to enter a password to get their identity confirmed by the card issuer in order to make online payments.
The duo claims that the new ‘invisible’ authentication system, dubbed ‘3D Secure 2.0’ will remove the need of passwords while still retaining a perception of security.
The Payment providers claim that using the new security protocol cardholders will be able to get their identity authenticated using one-time passwords or fingerprint biometrics instead of complex passwords.
MasterCard revealed that it is conducting trials of a wristband which authenticates a cardholder through their unique cardiac rhythm and that it is also piloting voice and face recognition systems as a means of authentication.
“All of us want a payment experience that is safe as well as simple, not one or the other,” said Ajay Bhalla, president of enterprise security solutions at MasterCard.
“We want to identify people for who they are, not what they remember. We have too many passwords to remember and this is creates extra problems for consumers and businesses.”
The new Mastercard/Visa standard is expected to get commercially adopted in 2015 and gradually replace the current 3D Secure protocol.
The announcement follows a recent research study which stated that payments on mobile devices are expected to account for 30 percent of all online retail sales by 2018.