Biometric technology is set to become an integral part of all online shopping as the need for greater security increases, a new report has claimed.
Research from Mastercard claims that one in four online transactions will need a greater level of authentication and security within the next 12 months.
New EU regulations governing online fraud are set to come into place next September, increasing the number of transactions subject to two factors of authentication by the payer, known as “Strong Customer Authentication” (SCA).
Currently, only around 1-2 per cent of transactions need cardholder authentication to complete a transaction.
“The use of passwords to authenticate someone is woefully outdated, with consumers forgetting them and retailers facing abandoned shopping baskets," said Ajay Bhalla, president global enterprise risk and security, Mastercard.
"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.”
Mastercard says it is already working with banks and retailers to introduce new technologies that will simplify these changes. This includes Identity Check, which uses a biometric identifier, such as a fingerprint, iris or facial scan to verify their identity using a smartphone when shopping online.
The company is also testing a biometric payment card featuring an in-built fingerprint sensor which is able to verify in-store purchases without the need to upgrade existing payment terminals.