Mastercard pilots digital ID service for online shopping

Mastercard has developed a new pilot service with Service NSW and alcohol delivery service Tipple to protect customers identity information and ensure age verification with the purchase of age restricted goods online. This move comes as Mastercard makes more moves in the virtual commerce industry and grows its presence in the metaverse.

ID, by Mastercard is a global digital identity network that allows users to create a profile verifying their identity so they can verify their identity without having to upload identity documents to unsecure platforms whenever they need to verify their age or identity. ID uses data encryption and biometric authentication and the network has been scaling in Australia since 2019. Mastercard’s digital identity service was built with interoperability in mind and can connect existing identity providers with other organisations, like Service NSW, with verification facilitated by Mastercard’s highly secure network. Since its launch in Australia, ID has partnered also with Samsung, and Microsoft.

“In today’s landscape, there needs to be a better way to provide quick and easy access to goods and services, without the hassle of sharing physical ID documents. Mastercard is working with the public and private sectors to build a national identity ecosystem where citizens can trust that their personal information is safe and secure. Connecting with trusted, innovative platforms like Service NSW and Tipple extends the value and use of ID to more providers and partner organisations in Mastercard’s network,” said Richard Wormald, Division President, Australasia, Mastercard.

This latest pilot follows Mastercard’s accreditation under the Australian Government’s Trusted Digital Identity Framework (TDIF) and builds on previous pilots that explore how ID can securely connect and integrate with services from other identity providers. With this new pilot, when customers purchase from online alcohol delivery service Tipple,  they verify their identity by connecting to the Service NSW app which has been integrated with the Mastercard ID Network. The only information received by Tipple is a verification indicating the consumer is over 18 years of age. Consumers do not need to share their date of birth, identity document numbers, or copies of their documents. This approach ensures that only the minimum amount of information needed to complete their purchase is provided, helping to preserve the consumer’s privacy while streamlining the transaction.

“For digital identity adoption to become mainstream, it is critical that the customer has a seamless experience and the confidence that the information they are sharing with the provider is secure. By partnering with Mastercard for Service NSW, we’re providing our customers with market leading solutions from trusted providers. We are extremely excited and proud to be involved in the pilot,” said Ryan Barrington, Chief Executive Officer, Tipple.

This is not Mastercard’s only recent digital innovation. Over in the United States, Mastercard announced two new ecommerce solutions, aimed at advancing the company’s presence in the metaverse. One of the virtual payment partnerships is with video game commerce company Xsolla. The partnership enables Mastercard cardholders to use Pay with Points to seamlessly redeem their loyalty points for in-game purchases integrated into Xsolla’s Pay Station product, also allowing gamers to gift in-game currency to friends and family.
The second recently announced partnership is with web3 ‘tech innovator’ Immersve to give consumers the ability to use cryptocurrency directly from their web3 wallet to make digital, physical or even metaverse purchases, wherever Mastercard is accepted. According to the announcement, users in ANZ  will be able to use their digital cash at any merchant that accepts Mastercard online. Immersve will partner with a third-party settlement provider and their customers will use USDC for all purchases. USDC will then be converted to fiat currency and settled on Mastercard’s network, the collaboration will address KYC/AML, and develop online fraud detection and blockchain analytics, leveraging the Mastercard Identity Services and CipherTrace solutions.

According to Mastercard, it will continue to roll out ID in other industries and verticals across Australia, helping businesses solve real-world problems, including reducing fraud and identity theft, while improving the consumer experience.

The e-commerce landscape is changing. With a Power Retail Switched On membership, you get access to current e-commerce revenue and forecasting, traffic levels, average conversion rate, payment preferences and more!