Introducing OTP-less card payments

Gone are the days when people used to wait for an OTP to arrive via SMS, struggle with multiple redirections and connection timeout issues while making online payments.

In order to make our users’ card payment experience a notch more secure and convenient, we have launched OTP-less offline & online card payments feature for transactions under Rs. 2,000 on our platform. This move will improve the overall payment flow in terms of transaction completion time and success rates while delivering superior user experience.

A large number of our users spend less than Rs. 2,000 for their everyday frequent payments. The convenience of OTP-less single click payments will result in increased conversions in a more secure and convenient way. To avail the service, our customers can enable their saved card or add a new card for instant payments at offline retail stores or while using any of their Paytm services and also at the partnered platforms such as Uber, Zomato, Jio among many others.

Here’s how our security mechanisms works for one click payments:

• Applicable only on trusted merchants — Merchants who have a history of accepting payments with Paytm will only be eligible for Paytm one click payments.
• Additional factor of authentication for enrollment to one click payments — At the time of giving consent for one click payments, customers will have to complete a test transaction which will be authenticated via an issuer generated OTP.
• Enhanced risk checks — At the time of the transaction, Paytm risk system will analyse each one click attempted transaction on the basis of multiple factors such as transaction amount, accepting merchant, geo-location, frequency and many more. One the basis of this analysis, Paytm will decide whether this transaction passes the minimum trust score to be allowed for one click payment. If the trust score turns out to be less than the threshold, then Paytm will initiate an OTP based authentication for the transaction. On top of our risk checks, the networks will also host similar security checks at their end and initiate an OTP for a transaction where they feel the security score is less than the threshold.
• Device binding of token — A token issued on a particular device can only be used for one click payments on that phone.
• Transaction amount limit — Paytm will limit the transaction value of eligible transaction on the basis of the merchants trust score. This will help limit the risk exposure of customers in case of fraud and also dissuade fraudsters from attempting frauds in the first place.

The good news is not over yet. We have also tied up with Flipkart owned Myntra where millions of our users can now pay through any of their preferred payment mode (cards, wallet & UPI).