As per CNBC, payment processing giant MasterCard Incorporated (MA) has recently collaborated with Norwegian startup company, Zwipe in order to roll out a contactless payment card – Zwipe MasterCard. This payment card featuring a fingerprint authentication sensor is the first of its kind as it combines biometric security authentication and contactless payment technology.
This card will directly store the cardholder’s fingerprint data instead of any external database, thereby replacing Personal Identification Number (PIN) number entries or passwords. This will ensure greater security and enable cardholders to undertake payment of any desired amount unlike other contactless cards.
According to a report by Forbes, an initial scan of the fingerprint is required to set up the fingerprint on the card. This fingerprint can then be used to authenticate each transaction at a payment terminal. As per other industry reports, the card’s fingerprint sensor’s power will be harvested from the contactless till, thereby enabling it to function without a battery. This will make it more user-friendly.
Many cards claim to offer convenient payment transactions through various features like PIN or signature or even tapping the card against the contactless till. However, the question is about whether these cards are competent when it comes to preserving cardmembers’ personal information or in other words their security. In this context, the Zwipe MasterCard is expected to fare well in terms of convenience as well as safety.
An important feature of this card is the use of near field communication (NFC) technology that will enable cardholders to wave the cards at compatible terminals as against swiping the same. This makes it all the more easy to use.
With regard to safety, as a user’s fingerprint must match while making payments, it can only be used by him or her, thereby leading to enhanced security. As the card is more secure, it allows unlimited transaction volume, which is a plus point.
The Zwipe MasterCard card has been tried in Norway by the bank Sparebanken DIN and has been successful as the cardholders and retailers accepted the card with a positive outlook. However, the card is yet to be introduced in other countries. This will expectedly be done by next year. We believe that the deal will satisfy the requirements of the increasing number of security-conscious customers and thus influence them to use the card, leading MasterCard to witness an increase in its transaction volume.
At present, MasterCard carries a Zacks Rank #2 (Buy). Other stocks in the financial transaction services space that look attractive at current levels include Heartland Payment Systems, Inc. (HPY), Visa Inc. (V) and Global Payments Inc. (GPN). While Heartland Payment sports a Zacks Rank #1 (Strong Buy), Visa and Global Payments have the same Zacks Rank as MasterCard.
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