Mastercard will be holding talks with banks from the U.K. about bringing biometric payment cards to market.
The credit card firm has been testing cards with in-built fingerprint scanners, which are used to verify customers’ identities.
This kind of will be intended to replace the use of passwords in addition to speed-up the process of generating payments online in addition to contactless transactions in-store.
A spokesperson for the company confirmed to CNBC on Monday that will that will was speaking with banks about launching the biometric cards.
“The use of passwords to authenticate someone will be woefully outdated, with consumers forgetting them in addition to retailers facing abandoned shopping baskets,” said Ajay Bhalla, president of global enterprise risk in addition to security at Mastercard.
“In payments technology, This kind of will be something we’re closing in on as we move through cash to card, password to thumbprint, in addition to beyond to innovative technologies such as artificial intelligence. that will’s far easier to authenticate having a thumbprint or a selfie, in addition to that will’s safer too.”
The push toward biometrics echoes a wider change happening from the payments industry right today. In January, the European Union implemented the Second Payment Services Directive (PSD2), a regulation aimed at speeding up transactions in addition to giving third-party firms access to banks’ customer data generating sure that will they can build better products.
Under the fresh rules, customers are required to confirm their identity every a few times after they have made a contactless payment. Mastercard said the biometric tech will be currently being trialed in South Africa. Visa — Mastercard’s main rival — will be also testing biometric cards in Cyprus.
PSD2 has put banks in addition to major financial services providers under intense pressure to improve their digital capability in addition to open up their data to third-party developers. Banks are treasure troves when that will comes to financial data, compiling huge amounts on a daily basis.
Moving towards biometric forms of payment like fingerprint sensors in addition to eye-scanning tech — TSB, for instance, said last year that will wants to be the first European bank to roll out iris authentication — to make payments simpler will be also required to improve financial security in addition to tackle fraud.