This story was delivered to BI Intelligence " Payments Briefing " subscribers. To learn more and subscribe, please click here . MasterCard announced that European markets will have access to Identity Check Mobile, a payment technology application that uses in-app facial recognition software to confirm a user’s identity in order to authenticate online purchases. The rollout follows successful trials in Canada, the Netherlands, and the US. Mastercard expects to roll out the service globally next year. Biometric authentication apps like Identity Check help make identity verification seamless while enhancing security. Rising e-commerce brings growing fraud. BI Intelligence forecasts that US e-commerce will rise to $631 billion in 2020, up from $341 billion last year. It’s likely that European markets are rising at a similar, or quicker rate. And as a result, digital fraud is becoming more commonplace and more expensive for merchants. Biometric authentication adds security while simplifying checkout. Biometric authentication is often more secure because it better verifies identity than, for example, a passcode or a PIN, which can easily be lost, stolen, or replicated. And because it can replace steps like passcode entry or address verification, which cause friction for mobile users because of small screens and slow connections, it keeps purchasing easy. That’s good for stakeholders, because it keeps fraud down while limiting cart abandonment. But Mastercard will have to ensure information is safe if it wants Identity Check to catch on. The unique nature of biometric data makes it more secure than a traditional password, but it also makes it highly valuable data for cybercriminals. That, together with the unfamiliarity associated with using a photo or video capture to verify a payment, could potentially deter users. But customer familiarity with front-facing camera technology, combined with ease of access, could help the service catch on among […]
