EU regulation means “quarter of all payments” will use biometrics

By September 17, 2018 Uncategorized

Up to one-in-four card payments will be secured by biometrics from next autumn, according to MasterCard in Ireland.

New EU regulations mean Irish consumers could be turning to biometric payments as soon as next year. And they will make traditional password authentication a thing of the past.

The European Banking Authority published details of its Strong Customer Authentication (SCA) initiative in March.

New payment security rules, requiring at least two factors of authentication, will come into force next September.

Sonya Geelon, Country Manager, Mastercard in Ireland said: “The use of passwords to authenticate someone is outdated. People forget them and retailers face abandoned shopping baskets…”

She told the Irish Independent: “In payments technology this is something we’re closing in on as we move from cash to card, password to thumbprint, and beyond to innovative technologies such as artificial intelligence.

“It’s far easier to authenticate with a thumbprint or a selfie, and it’s safer too.”

The new rules, aimed at preventing online fraud, will increase the number of transactions subject to two-factor authentication. It will impact both online and contactless purchases.

MasterCard say 25% of online sales (compared to just 1-2%, currently) will be subject to heightened checks. And biometric payments will come to the fore.