PURCHASE, N.Y.—Mastercard is forecasting a “bright” future for biometric technology, as new rules on strong customer authentication under PSD2 (Revised Payment Service Directive) come into force across Europe.
The European rules aim to tackle online fraud, by increasing the number of transactions subject to two factors of authentication by the payer, increasing the use of biometric authentication solutions.
“While in-store transactions using chip and PIN technology already comply, the biggest impact will be felt in online shopping, where consumers are already overwhelmed by password fatigue,” Finextra said.
With regards to card payments, currently just 1%-2% of online transactions require cardholder authentication to complete a transaction, but this is set to rise to up to 25% from next autumn, Finextra noted.