Mastercard has formed a partnership with payment solutions and card issuing company Edenred to launch a test pilot of biometric cards in Mexico.
These biometric features can be implemented on any Mastercard product, either debit, credit or prepaid, and works with existing EMV card POS terminals. Issuers can now leverage the biometric match data to improve approval rates and lower instances of card-present fraud.
One of the added benefits of the biometric card is a move away from cash payments within the region, Edenred said. Its CEO Andrea Keller said, “This technology will reduce the use of cash payments, improving the user experience, and will help with the allocation of funds, especially within social programs.”
The biometric card test is being launched with a focus on state benefits programs to help beneficiaries improve their security when receiving or using their benefit. Benefit program providers will also gain access to deeper insights on user spending.
Mastercard president of Mexico and Central America Jorge Noguera said, “This trial allows Mastercard and Edenred to support financial inclusion and implement new technology, in partnership with the Mexican state social welfare agency in Sonora, demonstrating the true value of public-private partnerships in delivering meaningful programs.
“By simplifying a typical purchase transaction, we can demonstrate that this technology works for the benefit of the people who need it the most and ensure that their disbursements are received securely.”
This is just the latest partnership in a long line for Mastercard, which has already had a very active 2019.
Last month, the payments giant welcomed authentication solution developer Veridium into its Start Path program which aims to help scale late-stage companies through its network. The company develops multi-factor authentication services which are bolstered by biometrics.
Mastercard also recently formed a deal with Konsentus to gain access to third-party provider (TPP) identity and regulatory checking services. Through the agreement, Mastercard hopes to give clients new open banking opportunities such as a pan-European directory of TPPs and a communication hub between banks and FinTechs.
Copyright © 2019 RegTech Analyst