OTP Free Payments: Online payment will be possible without OTP, transaction will stop if SIM-device does not match…

Big private banks and telecom companies across the country are working on ‘silent authentication’ technology. With this new technology, the need for one-time password (OTP) will be eliminated while making online payments. This system will automatically verify in the background whether the mobile number registered in the banking app matches the SIM card currently installed in the phone or not.

If the SIM card and the registered number do not match, the transaction will be blocked immediately. A special thing about this system is that the user will not need to take any action. This technology will also work with eSIMs. It is expected that this will stop frauds like SIM cloning and eSIM swapping. This information was given by Sameer Shetty, Digital Business Head of Axis Bank.

Helpful in preventing online fraud

Shetty said, “We are working with telecom companies on several pilot projects related to silent authentication. If a user is logged in to the banking app, but his existing mobile number does not match the registered number, the telecom network will send us a signal which will detect this discrepancy. This will enable us to detect possible fraud without causing any inconvenience to the customer.”

This system will work in background

According to Sundareswaran Krishnamurthy, cyber leader at PwC India, the security layers used earlier were often easily hacked. Now, banks and telecom companies are shifting the verification process directly into the core infrastructure of the network.

This system will work in the background, which will not be visible to both the user and potential hackers. To further strengthen security, additional features like Face ID and generating verification codes (OTPs) directly within the app are also being added.

New rules of RBI: Two-factor authentication becomes mandatory

Under the new rules issued by the Reserve Bank of India (RBI), Two-Factor Authentication (2FA) has now been made mandatory for all digital transactions done within the country.

This authentication process typically involves a combination of a password or PIN (something you know), an OTP or app-generated code (something you have through your phone), and biometrics (like facial recognition or a fingerprint scan). Although SMS-based OTPs have not been discontinued, banks are now being encouraged to use modern methods, such as fingerprint authentication and device-specific security features.

OTPs now available on WhatsApp

After the new rules, banks will now be able to use third-party applications like WhatsApp to send OTPs. It is estimated that approximately 10 billion transactional messages are sent every month. Nitin Singhal, MD, cloud communications company Sinch, said that this change will improve customer experience and reduce the rate of failed transactions. This change will also prove beneficial for brands, as an easier checkout process will increase customer trust and accelerate the adoption of digital services.