According to Mastercard, existing methods to prove an identity online can take shoppers away from a retailer’s website, can be time consuming and potentially result in the purchase being declined or abandoned.
The card company says its Identity Check system will put identity verification at the cardholder’s fingertips using technologies such as biometrics and SMS-delivered one-time passwords.
And, Mastercard say this next generation of consumer authentication is verified by recent research – the Global MasterCard survey – which shows that more than half (52%) of Australian shoppers believe there has to be a better way to keep personal information, as 57% admit to forgetting crucial passwords more than once a week.
The majority (69%) of Australians have to enter passwords for more than six accounts, devices or applications every week, according to the survey, while one in five shoppers use the same password for everything, and a further 56% rely on only a few different variations – despite warnings it puts them at greater risk from fraud.
When it comes to the biggest password pain points, Mastercard says the majority (57%) of Australians find stipulations around strength, numbers, symbols and cases annoying, along with getting locked out after multiple attempts (48%), and having to change passwords so often (38%).
“MasterCard is always looking for innovative ways to make everyday transactions faster, easier and more secure for customers,” said Garry Duursma, Head of Market Development & Innovation for MasterCard Australasia.
“Australians are technologically savvy and fast to adopt innovative payment options, with ATM cash withdrawals continuing to decline and online shopping on the rise, MasterCard’s Identity Check will be a welcomed development for shoppers concerned about security online.”
Duursma says MasterCard Identity Check extends the company’s commitment to upgrade to online payment security, and the use of technology and data will move from a reliance on what the consumer knows (passwords), to what they have (mobile phone or other smart device) and who they are (biometrics).
Ajay Bhalla, president of Enterprise Security Solutions, MasterCard said that “Today, people shop on all sorts of devices, and they expect technology to simplify and secure the transaction,” said “This is exactly what Identity Check delivers.”
Bhalla said hundreds of cardholders in the Netherlands began using biometric-enabled payments last month, while a similar trial is also underway in the US.
US financial institutions are able to choose to participate in MasterCard Identity Check beginning in the middle of 2016, with a global expansion scheduled by Mastercard for 2017.
And, for the record, here's what Mastercard's survey reveals about about identity checking in othercountries:
• People in Mexico (17 minutes), Colombia (16.9 minutes) and Singapore (15.1 minutes) lose more than a quarter of an hour each time they have to reset a forgotten password
• Globally, nearly one in three people have abandoned a purchase because they couldn’t remember their password, with around half of consumers in Brazil (52%), Colombia (48%), Germany (47%) and Peru (47%) having done so
• 40% of people tend to use the same one or two passwords for almost every website that requires a password
• People in the United Kingdom, Canada, the United States and India use passwords for more than 11 different online accounts or applications regularly every week, the highest in the world
• The Japanese enter passwords most frequently – 11 times per day compared to the global average of eight times per day.