Paytm announces OTP-less card payments: Here is how it works
Paytm is introducing OTP-less card payments for transactions under Rs 2,000. The feature will work both online as well as offline. The feature, according to the company, will eliminate the need to wait for an OTP for payments. While one-time password serves as a layer of security while making payments, it can also be cumbersome. The multiple re-directions and connection timeout issues while making online payments could be a struggle. The Indian e-commerce payment system thinks the new feature will improve the overall payment flow.
Here is how it works
Paytm says a large number of its users spend less than Rs 2,000 for their everyday frequent payments. In order to help those users not wait for OTP or get lost in redirection, the company is introducing this new feature. In order to avail the service, Paytm users 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. The service will also work at the partner platforms such as Uber, Zomato, Jio among many others.
In order to make the feature available to more users, the company has also tied up with Flipkart owned Myntra. It says millions of its users will be able to pay through any of their preferred payment mode. Since demonetization, Paytm has become the torch bearer for mobile payments in the country. The service aims to hit 12 billion transactions by the end of financial year 2019-20. It had 5.5 billion transactions in 2018-19 and 2.5 billion transactions in 2017-18.
A report by LiveMint notes that Paytm First, a subscription-based service launched in March, has attracted half a million subscribers. It has 350 million registered users and is now focused on expanding to tier 4-5 cities. The service offers an array of payment options ranging from mobile wallets to Unified Payments Interface and internet banking.