Mastercard rolls out new tech to replace OTP step for online transactions: Report

Mastercard has rolled out a new mobile authentication technology called ‘Identity Check Express’ for the Indian market, which would allow users to carry out online transactions without a one-time password (OTP), reports  Business Standard.

For transactions below Rs 2,000, the new solution provides sellers with customer details automatically after the first purchase. While for those above Rs 2,000, users can create a unique transaction PIN, which would from then replace the OTP.

Moneycontrol could not independently verify the report.

The company said its analysis showed that up to 20 percent users left transactions midway due to long-drawn processes and multiple page redirections. It said the new solution would improve e-payments security and user experience.

Ajay Bhalla, president-cyber and intelligence solutions, Mastercard, said, "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."

While the RBI had earlier mandated two-factor authentication, it relaxed rules for transactions below Rs 2,000 after demonetisation.

The company claims this is the first such rollout anywhere in the world and has expressed confidence in India’s growing e-commerce space. It announced an investment of $1 billion over the next five years in India.