Consumers hate passwords. Fraudsters love them. There might be no better business case for passkeys, which are a biometric, digital alternative to manually selected and stored passwords. Passkeys have also been at the center of recent product introductions from Visa, Mastercard and other payments and financial services companies. The development and usage of passkeys is arguably one of the most important security stories of the year.
How do they work? The answer to that question has a very simple level and a very complex technological level. To see the simple level, it’s easiest to look at Visa’s May 16 series of announcements featuring an example that combines the physical and digital shopping and security experience. Passkeys will initially be introduced into Click to Pay, a service mainly used outside the U.S., which links a digital credential to the consumer’s device. During a purchase, merchants request a digital credential from Visa, which validates the device details and issues a payment token. For consumers, the process involves clicking the “buy now” button, a quick facial scan, and then their payment cards appear at checkout. They can then choose their preferred payment card.