Biometric Authentication Meets Innovation: Introducing Payment Passkeys

In a rapidly evolving digital economy, the need for seamless, secure, and user-friendly authentication methods has become more pressing than ever. Traditional passwords and OTPs, once trusted staples of online security, are now major sources of friction—leading to failed transactions, customer frustration, and lost revenue.

At FSS, innovation lies at the heart of everything we do. Our mission has always been to push boundaries and redefine payment experiences in ways that deliver tangible value to our customers and partners. In line with this vision, we’re thrilled to announce our collaboration with Mastercard—a global leader in payment innovation—to bring Payment Passkeys to India.

This breakthrough solution enables biometric-first authentication that makes paying online as simple and secure as unlocking your phone.

The rise of biometrics in payments

Biometric payment technology leverages unique physical traits—like fingerprints or facial features—for user authentication. First gaining traction in the early 2000s, biometrics became mainstream when Apple launched Touch ID in 2013. Since then, facial recognition, voice identification, and device-linked biometric wallets have gained prominence.

What’s driving the rise of biometric payments

• Faster, frictionless transactions with no dependency on OTP delivery
• Eliminates need for passwords, reducing memory fatigue and login resets
• Higher security, as biometric data is stored locally and not transmitted externally
• Higher trust and satisfaction for users, and reduced fraud and abandonment for merchants
• Cost-effective and intuitive, with better ROI for businesses

What are Payment Passkeys?

Mastercard’s Payment Passkeys are the latest evolution in secure online authentication. Unlike traditional methods, passkeys replace OTPs and passwords with a quick biometric scan on the user’s device—delivering a seamless, secure, and efficient payment experience.

Now integrated into the FSS Payment Gateway, this feature empowers banks, merchants, and customers alike to move toward a password less future with greater convenience and reduced friction.

This eliminates the issues caused by OTP failures due to poor network conditions or system downtimes—issues that currently contribute to up to 20–30% transaction drop-offs and significant revenue loss.

How it works: From setup to seamless payment

Let’s walk through a typical payment scenario with a passkey:

Setting up and using Payment Passkeys is designed to be simple, intuitive, and secure—for users of all technical abilities.

Step 1: One-Time Verification

The user begins by verifying their identity using a one-time password sent to their registered mobile number or email.

Step 2: Create Your Passkey

Post-verification, the user is prompted to create a Payment Passkey by linking their device’s biometric authentication—such as a fingerprint or face scan.

Step 3: Secure Local Storage

The biometric data is encrypted and stored locally on the user’s device. It is never transmitted or saved on external servers, ensuring maximum data privacy.

Step 4: Browse and Checkout

When making a purchase, the user selects the desired product or service and proceeds to checkout as usual.

Step 5: Biometric Authentication

At the point of payment, the user is prompted to authenticate using their saved biometric—no need to enter a password or wait for an OTP.

Step 6: Instant Transaction Completion

Upon successful authentication, the transaction is completed instantly and securely, offering a fast and frictionless payment experience.

What makes Payment Passkeys different?

In the traditional online payment process, users receive a one-time password via SMS or email, enter it manually, and wait for authentication—a flow vulnerable to network delays, delivery failures, and phishing attacks. Payment Passkeys eliminate these pain points by replacing OTPs with instant biometric verification stored securely on the user’s device. This shift speeds up the process and enhances security, reduces drop-offs, and creates a frictionless checkout experience.

Future-ready with RBI’s direction

In 2024, the Reserve Bank of India issued a draft framework urging all banks and payment system participants to explore alternatives to SMS-based OTPs. The regulator highlighted the need for more secure, reliable, and user-friendly authentication methods such as biometrics, passphrases, and tokens. Mastercard Payment Passkeys align perfectly with this vision, offering a secure biometric-first solution that addresses both regulatory direction and customer expectations. FSS has proactively embedded Passkeys into its Payment Gateway, ensuring banks and merchants are future-ready while staying fully compliant with RBI’s guidelines.

The synergy between FSS and Mastercard

The success of Payment Passkeys lies in the powerful synergy between Mastercard’s innovation and FSS’s deep expertise in digital payment infrastructure.

At FSS, we have embedded Passkey functionality within our Payment Gateway ecosystem to ensure banks and merchants can seamlessly adopt this capability without complex overhauls. Together, we are delivering:

• Better operational efficiency for banks
• Lower fraud rates and higher trust for customers
• Increased conversion and revenue for merchants
• A consistent, intuitive experience across devices and platforms

This collaboration is not just technical—it’s strategic. It reimagines how authentication can fuel better digital commerce.

Real-world applications

Payment Passkeys are poised to transform payment experiences across industries:

• E-commerce: Faster checkouts, fewer cart abandonments
• Retail: Biometric-enabled POS terminals eliminate the need for cards or cash
• Banking: Seamless login and authentication on mobile banking apps
• Travel: Cardless payments at airports, hotels, and duty-free stores for global travellers

Navigating barriers to adoption

Despite its clear benefits, biometric authentication must overcome certain challenges:

• Data privacy concerns: It’s vital that biometric data is stored only on user devices and never on centralized servers.
• Infrastructure gaps: Not all merchants or users have devices that support biometric or Passkey capabilities.
• Accessibility and inclusivity: Alternatives must be available for individuals who cannot use biometric features.
• Regulatory compliance: Ethical usage, consent, and data transparency must be prioritized at every step.

Path forward

The integration of Mastercard Payment Passkeys within FSS’s Payment Gateway marks a transformational shift in how India will experience digital payments. By eliminating passwords and OTPs, and embracing secure, biometric-first authentication, we are not only reducing friction but also building trust in every transaction.

As this technology gains momentum and adoption scales across banks and merchants, we are excited about what lies ahead:
A future where digital transactions are smarter, faster, and safer—for everyone.

And at the core of enabling this future is BLAZE—our next-generation payment technology platform that powers the FSS Payment Gateway.

Blazing-fast payments at the speed of commerce

Built to meet the evolving demands of the digital economy, FSS BLAZE offers a full-stack payment gateway experience, from digital merchant onboarding and secure payment processing to rich data insights and value-added services that help drive higher sales.

As online commerce continues to thrive, acquirers need to differentiate themselves with dependable and cutting-edge services. With dynamic scalability, resilient performance during peak traffic, and independent scaling of services, BLAZE empowers businesses of all sizes to grow confidently and efficiently.

FSS Payment Gateway is now powered by FSS BLAZE—a robust platform built for financial institutions, supporting 20,000+ transactions per second, and going live in less than 3 months.

Together, Payment Passkeys and BLAZE redefine the digital payment landscape—unlocking a future where speed, security, and scalability go together.

Learn more about how FSS is redefining digital payments with BLAZE and Payment Passkeys.

Download FSS Payment Gateway Brochure