Two major international bank card issuing providers have announced that they will launch biometric authentication next year to enhance the security of online payments and prevent theft. The new technology will enable cardholders to verify their identity through facial scanning or fingerprint recognition to complete a transaction.
Statistics from the Financial Regulatory Commission indicated that Taiwanese consumers are increasingly relying on cashless payments. The number of non-cash payments in the first three quarters of 2024 exceeded 6 billion, amounting to a total transaction amount of NT$6.71 trillion (USD$206.7 billion), an increase of almost 15% compared to the same period last year.
Currently, transactions are largely completed through the use of passwords or one-time PINs (OTPs), which are susceptible to phishing websites, SMS interception, and other forms of fraud. To mitigate this, Mastercard will allow cardholders to quickly complete a biometric scan rather than input a password or OTP, reducing the risk of third parties obtaining cardholder data.
Visa has also recently demonstrated new products and solutions slated for launch at the Singapore Fintech Festival. Their new Visa Payment Passkey Service, based on the latest FIDO (Fast Identity Online) standard, allows consumers to quickly scan their face or fingerprints on personal devices to complete identity authentication and authorize online payments.