MasterCard, Visa to Develop Online Authentication Protocol to Replace 3D Secure

Nov. 17, 2014

MasterCard, Visa to Develop Online Authentication Protocol to Replace 3D Secure MasterCard on Thursday revealed it is working with Visa to develop an authentication standard for online transactions that will replace 3D Secure and make static passwords obsolete. MasterCard said the new approach will leverage an increasing trove of cardholder data to validate the identity of users without resorting to password queries that interrupt the transaction flow. When authentication is needed, the card networks said one-time passwords and biometric characteristics will be used to identify users instead.

"All of us want a payment experience that is safe as well as simple, not one or the other," said Ajay Bhalla, president of Enterprise Security Solutions for MasterCard. "We want to identify people for who they are, not what they remember. We have too many passwords to remember and this creates extra problems for consumers and businesses."

The companies said the new protocol could be in place sometime next year and will replace the current 3D Secure protocol that each network currently uses (MasterCard SecureCode and Verified by Visa). Fingerprint biometrics have been gaining popularity recently, especially with the introduction of Apple Pay, and MasterCard recently began a pilot in Canada that employs heart rhythms to identify cardholders.