On Monday, Mastercard has announced the launch of an enhanced identity solution that is designed to better the online shopping experience of customers and tackle digital fraud. The enhanced identity solution was developed and launched in collaboration with Microsoft Corp.
One of the
common digital frauds is first-party fraud, where a legitimate purchase can be
made online and later disputed. It is estimated to be a global issue worth $50
billion. Mastercard has addressed these needs by improving its Digital
Transaction Insights solution with next-generation authentication and real-time
decision intelligence capabilities.
The new solution
pairs Mastercard’s network insights with the merchant’s own data to confirm the
consumer is who they claim to be. Hence, it provides financial institutions
with the additional intelligence that is needed to optimize their authorization
decisions as well as approve more genuine transactions. Digital Transaction
Insights is used across countless online checkout instances, from click-to-pay
functionality and wearables to digital wallets and even in-app purchases.
Ajay Bhalla, President,
Cyber and Intelligence at Mastercard, said, “Shopping online should be simple,
quick, and secure. But that isn’t always the case. We’re committed to
developing advanced identity and fraud technology to help enhance the real-time
intelligence we provide to financial institutions around the globe. This builds
on our longstanding commitment to working across the industry to provide
advanced technologies that enable trust and help build a safe and thriving
digital ecosystem for all.”
Microsoft is the
first partner who has shared the insights and integrated with the new Digital
Transaction Insights solution across numerous lines of business. Building on a
long history of cross-collaboration, Microsoft’s Dynamics 365 Fraud
Protection’s proprietary risk assessment has been integrated with Mastercard’s
Digital Transaction Insights to enable real-time intelligence better sharing in
an easily consumable and actionable format. For those who are unaware, Microsoft’s Dynamics 365 Fraud Protection’s proprietary risk assessment
leverages adaptive AI to assist in real-time fraud detection by identifying
risky behaviors across purchase, account, and in-store activities.
The integration
will enable issuers to enhance their decision-making processes for
authorizations, chargebacks, and refunds. Also, organizations can improve
transaction acceptance rates with insights that help them balance profitability
and revenue opportunities against fraud loss and checkout friction.
Charles Lamanna,
corporate vice president of Business Applications and Platforms at Microsoft,
said, “We are excited to partner with Mastercard to leverage our cloud-native,
cutting-edge fraud assessment tools to empower issuers and merchants to prevent
more fraud and approve more genuine users. This partnership lays the foundation
for the future of global fraud prevention where data silos are no longer a
barrier to security.”
Digital
Transaction Insights is enabled by EMV 3-D Secure and Mastercard Identity
Check, which is a well-known global authentication solution built on the
enhanced industry standard. Both elements support GDPR requirements as well as
other related regulations. In 2021, Mastercard Identity Check delivered a 14%
uplift in transaction approval rates across billions of transactions. So,
identity technology is already successful to some extent.
Sources:
https://news.microsoft.com/2022/04/25/mastercard-launches-next-generation-identity-technology-with-microsoft-to-help-more-consumers-shop-online-safely/
https://moeara.com/mastercard-launches-next-generation-identity-technology-with-microsoft-to-help-more-consumers-shop-securely-online/
https://getaboutcolumbia.com/mastercard-launches-next-generation-identity-technology-with-microsoft-to-help-more-consumers-make-secure-online-purchases/