Mastercard has enabled users to do online transactions without the need to authenticate a one-time password (OTP) — something it says has been done for the first time globally.
A new mobile-first authentication solution called Identity Check Express, rolled out by the global payments major on Tuesday, allows transactions below Rs 2,000 to be made without an OTP, with customer details automatically being provided to the seller every time after the first purchase. For transactions above Rs 2,000, a unique transaction personal information number can initially be created by the user, which later removes the need for OTPs.
Mastercard’s analysis suggests that up to 20 per cent of mobile e-commerce transactions are abandoned midway. Existing methods to verify an identity online can take shoppers away from a merchant’s website and are time-consuming due to issues such as consumers being redirected to a browser environment for an in-app payment or mobile network fluctuations.
The company says this will provide better security for online transactions and enhance ease of use. While the Reserve Bank of India had earlier mandated the use of two-factor authentication, it had relaxed the rules after demonetisation for transactions below Rs 2,000.
“With the growing spending power and aspirations of Indian consumers fuelling the growth of e-commerce in the country, Mastercard’s digital by default DNA drives us to constantly innovate to enhance the convenience and security of digital payments. On the other hand, we have foiled security breach attempts worth billions of dollars globally,” said Ajay Bhalla, president-cyber and intelligence solutions, Mastercard.
In May 2019, the company announced an investment of $1 billion over the next five years in India, in addition to its earlier investment of $1 billion between 2014 and 2019. A significant part of this investment will establish a full, on-soil domestic transactions processing centre in and for India, with the remainder being directed towards building a services hub.