Mastercard Launches Next-Generation Identity Technology with Microsoft to Help More Consumers Shop Online Safely

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.




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