Will Passkeys Replace Passwords in Payments? | G+D

Why It Matters

Passkeys combined with AI‑driven identity checks could dramatically cut fraud and checkout friction, reshaping how banks and merchants secure instant payments.

Key Takeaways

• Instant payments drive demand for stronger identity verification
• AI combats evolving synthetic fraud in voice and deep‑fake attacks
• Passkeys replace passwords, offering cryptographic, biometric authentication for financial services
• Behavioral analytics detect anomalies like typing speed changes
• Passkeys enable seamless checkout, reducing reliance on 3‑DS

Summary

Olivia Siri, head of global digital solutions at G+D, frames the conversation around the rapid growth of instant payments and the parallel surge in fraud that threatens both customer experience and revenue. She emphasizes that identity verification is the cornerstone of secure transactions, and that traditional card rails are ill‑suited for today’s speed‑driven expectations.

The discussion pivots to artificial intelligence as a dual‑edged sword: AI models analyze massive data streams to spot patterns of synthetic voice, deep‑fake selfies, and other AI‑generated fraud attempts, while also automating real‑time customer communication. Siri highlights behavioral analytics—monitoring typing cadence, hand usage, and device interaction—to flag deviations that may indicate compromised accounts.

Central to the narrative is the emergence of passkeys, a cryptographic‑biometric credential that supersedes passwords. Passkeys create a trusted relationship among banks, devices, and merchants, enabling password‑free authentication and potentially eliminating the need for 3‑DS during checkout. G+D is already piloting use cases where merchants authenticate payments directly via passkeys, promising faster, frictionless transactions.

The broader implication is a shift toward a more secure, user‑friendly payments ecosystem. By integrating AI‑driven fraud detection with passkey authentication, financial institutions can reduce fraud losses, improve conversion rates, and meet consumer expectations for instant, seamless digital experiences.

Original Description

In this interview, Olivier Sery from Giesecke+Devrient (G+D) explains how AI and passkeys are improving security in digital payments.

The discussion covers AI-driven fraud detection, digital wallet security, and passwordless authentication, showing how G+D is helping banks and payment providers deliver safer, frictionless user experiences.

Read the full interview on FF News :

https://ffnews.com/fintech-tv/how-are-ai-and-passkeys-enhancing-security-and-user-experience-in-digital-payments/

@Money2020Tv @giesecke-devrient