Now you don’t need OTP for low-value transactions on Flipkart

Flipkart has today announced Visa Safe Click (VSC), powered by Visa, that will eliminate the need for One Time Passwords (OTP) for transactions up to ₹2,000 on the e-commerce platform. In a statement, the company said that VSC will deploy India’s first in-app, device-based network authentication solution for a hassle-free and safe payment process for the consumers.

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This means that all the users of Flipkart will now be able to place order on the platform without the need for OTP verification for payments. However, this is limited to orders valued under ₹2,000 and the OTP will verification will be needed to order above ₹2,000.

Ranjith Boyanapalli, Head, Fintech and Payments Group at Flipkart, said: “OTP-based authentication is one of the biggest points of friction in online card transactions, wherein we have observed significant customer drop-offs. VSC completely replaces OTP with a background authentication, removing the need for any additional customer action. Through this initiative, we hope more consumers can make small-ticket purchases more easily and complete their purchase journey in a click.”

T.R. Ramachandran, Group Country Manager, Visa India and South Asia, said: “Visa’s team of developers in India designed VSC to boost the customer experience and tackle unique challenges in the Indian e-commerce market. It eliminates points of friction, such as cart abandonment, connectivity and incorrect passwords.”

The company has been working to make it easier for the customers to make purchases on its platform. Earlier, the company introduced fintech solutions on the platform for easy accessibility. It has also ramped up the distribution reach to enable credit access and affordability options for shoppers across the country.

Flipkart has also launched products like Flipkart Pay Later and Cardless Credit which aims to help new-to-credit customers enjoy a shopping experience that is seamless and affordable. The company has said that it plans to onboard the next 200 million customers.