Mastercard and Visa dive deeper into the biometric payments space with new partnerships
- Mastercard will bring FinGo's vein-scanning payments solution to more markets.
- And Visa is working on a biometric authentication solution for online transactions with the UAE's Abu Dhabi Islamic Bank.
Both card networks struck new deals in the biometrics space, which is expected to be worth $82.8 billion by 2027.Here's what you need to know:
- Mastercard partnered with FinGo to bring the fintech's biometric authentication offering to global markets. FinGo lets users verify their identities and authenticate transactions using their unique finger vein patterns. The partnership gives FinGo access to Mastercard's white-label payment processing solution, Mastercard Payments Services Gateway (MPSG), to help it grow its footprint in the Middle East, North Africa, Asia Pacific, Australia, and North America.
- Visa brought a biometric authentication solution to the UAE's Abu Dhabi Islamic Bank (ADIB). The partnership leverages Visa Consumer Authentication Service, which uses nontraditional payment verification methods like fingerprint and facial recognition. Through this integration, bank customers can use the tech to validate online transactions through the ADIB mobile app. It's also the UAE's first biometric authentication solution for ecommerce transactions.
They also complement the issuers' existing fraud prevention initiatives. The pandemic opened the door to a deluge of fraud, particularly ecommerce fraud, which hit $17.5 billion in 2020 and is expected to break $20 billion this year, per Juniper Research-heightening the need for stronger payment authentication solutions.This could also be why both card networks ramped up their identification services: Visa recently invested in biometric authentication startup LoginID, and Mastercard just acquired digital identification platform Ekata. Visa's and Mastercard's recent partnerships in the biometrics space might push more merchants and financial institutions to work with them so they can use those value-added services.
Want to read more stories like this one? Here's how you can gain access:
- Join other
Insider Intelligenceclients who receive Payments & Commerce forecasts, briefings, charts, and research reports to their inboxes each day. >> Become a Client
- Explore related topics more in depth. >> Browse Our Coverage
- Here’s how to recharge your Reliance Jio on WhatsApp
- India may classify Bitcoin as an asset class, but that may not solve the underlying problem
- Facebook rolls out new chat themes and payment options in Messenger app for US users
- Dodla Dairy's ₹520 crore IPO isn't to expand into new markets but to strengthen its foothold where it already exists
- Sun TV Network's advertising revenue shrinks, but profit jumps 11% on subscriptions