Biometric MasterCard Coming Before the End of the Year?
By Jackson Lewis on Apr. 24, 2017PURCHASE, N.Y. -- Mastercard's first biometric credit card wrapped up two tests this month, and a worldwide rollout could happen before the end of the year.
The credit company is combining chip technology with fingerprints to verify a cardholder’s identity for in-store purchases. South Africa is the first market to test the evolved technology, with two separate trials recently concluded with Pick n Pay, a leading supermarket retailer based in Johannesburg, and Absa Bank, a subsidiary of Barclays Africa, also based in Johannesburg.
The new card builds on fingerprint scanning technology used for mobile payments today and can be used at EMV terminals worldwide, according to the company.
“Consumers are increasingly experiencing the convenience and security of biometrics,” said Ajay Bhalla, president of enterprise risk and security for MasterCard. “Whether unlocking a smartphone or shopping online, the fingerprint is helping to deliver additional convenience and security. It’s not something that can be taken or replicated and will help our cardholders get on with their lives knowing their payments are protected.”
Here's a look at details of MasterCard's biometric features and plans for its rollout ...
How it works
To get a biometric-enabled card, a cardholder must register with their financial institution. Upon registration, the customer's fingerprint is converted into an encrypted digital template that is stored on the card. The card is then ready to be used at any EMV card terminal globally.
When shopping and paying in-store, the biometric card works like any other chip card. The cardholder inserts the card into a retailer’s terminal while placing their finger on the embedded sensor. The fingerprint is verified against the template and, if the biometrics match, the cardholder is successfully identified and the transaction can then be approved, with the card never leaving the consumer’s hand.
What it means
Authenticating a payment transaction biometrically—in this instance via fingerprint—confirms in a unique way that the person using the card is the genuine cardholder.
Merchants can easily maximize the shopping experience delivered to their customers, because the card works with existing EMV card terminal infrastructure and does not require any new hardware or software upgrades.
For issuers, the technology helps detect and prevent fraud, increase approval rates, reduce operational costs and foster customer loyalty. Also, a future version of the card could feature contactless technology, adding to the simplicity and convenience at checkout.
Now and later
The recent South African trials mobilized employees from Pick n Pay and Absa Bank to test the potential ways convenience and security could contribute to the checkout process. Over the next few months, additional trials will be conducted with the biometric card. A full rollout is expected later this year.
For Absa, the biometric card forms part of the bank’s strategy to test and develop sophisticated technology capabilities designed to improve its payment operations and client service, reduce risk and make banking easier and even more secure for its customers.
Additional trials are being planned in Europe and Asia Pacific in the coming months.