Mastercard advances digital payments with tokenization and passkeys

Tech-driven innovations secures digital transactions and reduces cash dependency in Asia.

With tokenization, biometric passkeys, and click-to-pay functionality, Mastercard is addressing key security and usability challenges in digital payments, said Sandeep Malhotra, Executive Vice President, Products & Innovation, Asia Pacific at Mastercard.

“In Asia, the secular shift towards digital is underway,” Malhotra explained. “The consumer need for speed and convenience has blurred the lines between physical and digital interactions.” However, he noted that inconsistent digital experiences and security concerns still hamper widespread adoption.

To overcome these hurdles, Mastercard is launching a series of initiatives, starting with tokenising payment credentials. Malhotra said that tokenisation reduces the risk of fraud by replacing sensitive data with secure, non-transferable credentials.

Mastercard’s new click-to-pay solution is also aimed at simplifying the digital checkout experience. “We’re introducing something at an industry level called click-to-pay,” he noted, highlighting the need for a standardised online transaction process.

In addition, Mastercard’s payment passkeys leverage biometric authentication to eliminate the need for traditional passwords and OTPs, which are prone to interception. “Payment passkey is just like unlocking your own device,” Malhotra stated. “You don’t need to get an OTP… And those credentials cannot be shared.”

These innovations are being rolled out in Singapore, with plans for broader adoption across Asia.