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Telcos To Soon Come Up With ‘No OTP' User Verification For Financial Transactions

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Soon Indian telecom companies will authenticate user identity using just their mobile number, reprieving users from the hassle associated with entering the password every time when carrying out transactions via smartphones. As per the ET report, telcos like Reliance, Airtel, Vodafone Idea also wish to employ this to handle fraudulent activities that are executed via SIM mirroring, providing unauthorized access to bank accounts and other safe digital enclaves.

Telcos To Soon Unveil ‘No OTP' User Verification For Financial Transactions
 

In the current regime to carry out a financial transaction, customer needs to provider his or her mobile number to the app or site and wait for the 4 to 6-digit OTP to be received on the smartphone and it is only after the unique number is entered, the transaction gets completed. In case if there is a delay in getting the OTP, the transaction gets timed out and the user has to face difficulty. Also there are instances when the transaction gets stalled, with money getting debited from the account.

"It is leading to password fatigue across age groups. We are working on this kind of mobile identity, which will ensure secure transactions in one shot," a senior executive at one of the telecom service provider told the leading business daily.

The feature that is being run currently on a pilot-basis as per telecom executives based on regulatory clearances will become available for all by the H1CY2021. Companies such as Route Mobile offer the technology and play the role of a liaisoning agent between enterprises and operators in the area, known as Mobile Identity.

"Route Mobile will offer these services to enterprises directly. On the one hand, we build the identity layer by liaising with operators. On the other hand, we offer a unified API (application programming interface) that brands can leverage to enable Mobile Identity services for authenticating users," the ET report cited Rajdipkumar Gupta, managing director at Route Mobile as saying. "So the enterprises will have to pay vendors like us to avail this service and we pay operators."

 

As per the telecom executive mentioned previously, there shall not be any compromise in security measures.

"Earlier, one had two-step security process - punch in the mobile number and wait for the OTP. Now, the same two-step process is used - your mobile number and then the verification," said the executive.

The new facility shall be offered as an option to users, as some consumers may still prefer to continue with OTP or password authentication method.

GoodReturns.in

Read more about: otp financial transaction
Story first published: Saturday, December 26, 2020, 16:01 [IST]
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