OTP-Free Payments Coming; Transactions Blocked if SIM-Device Mismatch

Big private banks and telecom companies of the country are working on ‘silent authentication’ technology. This will eliminate the need for one-time password (OTP) while making online payments. This system will check in the background whether the number registered in the bank app and the SIM card of the phone matches or not.

If the SIM and number do not match, the transaction will be blocked immediately. The special thing is that the user will not need to do anything in this. This technology will also work on e-SIM. This will stop frauds like SIM cloning and e-SIM swap. This information was given by Sameer Shetty, Digital Business Head of Axis Bank.

Will help in preventing online fraud

Shetty said, ‘We are working on many pilot projects of silent authentication with telecom companies. If a person is logged in to the app, but his mobile number does not match the registered number, the telecom network will signal it to us. With this, we will be able to detect possible fraud without disturbing the customer.

The system will work in the background

According to Sundareshwar Krishnamurthy, cyber leader of PWC India, till now the layers of security were such that they could be easily hacked. Now banks and telecom companies are shifting verification to the core part of the network itself.

This system will work in the background, which users or hackers will not be able to see. To ensure security, features like Face ID and generation of code (OTP) within the app are also being added.

New RBI rules: Two-factor authentication mandatory

Under the new rules of the Reserve Bank of India (RBI), two-factor authentication (2FA) has now been made mandatory for all digital transactions in the country.

This includes password or PIN (which you remember), OTP or app code (which is in your phone) and biometrics (like face or thumb).

Although SMS OTP has not been discontinued, banks are now being encouraged to use modern methods like fingerprint and device security.

OTP can also be found on WhatsApp

After the new rules, now banks will also be able to use third-party apps like WhatsApp to send OTP. It is estimated that about 10 billion transactional messages are sent every month.

Nitin Singhal, MD of cloud communication company Sinch, said that this change will improve the customer experience and will also reduce the transaction failure rate.

This will also be beneficial for brands, as an easier checkout process will increase customer trust and accelerate digital adoption.

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