Flipkart to eliminate OTP during checkout for Visa cardholders
Indian ecommerce major, Flipkart recently announced the launch of a new payment solution, Visa Safe Click (VSC) - powered by payments technology giant, Visa.
VSC will enable the ecommerce platform to deploy an in-app device-based network authentication solution, which will eliminate the need for One Time Passwords (OTP) for transactions up to Rs 2,000, while also ensuring a completely secure payment experience.
By enabling consumers to enjoy a hassle-free and safe payment process for transactions up to Rs 2000, Flipkart hopes to reduce the steps in the payment system and help consumers complete their purchase journey with ease, primarily in regions where internet connectivity and e-literacy are scarce.
Commenting on this, 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 is the outcome of one such effort and completely replaces OTP with a background authentication, removing the need for any additional customer action."
Through this initiative, Flipkart is expecting more consumers to make small-ticket purchases easily, and complete their purchase journey in a click, he added.
Adding to this, TR Ramachandran, Group Country Manager, Visa India and South Asia, said,
“As the Indian ecommerce market is expected to grow exponentially over the next few years, digital payment success is likely to be a crucial driving factor behind the adoption of online shopping. Visa's team of developers in India designed VSC to boost the customer experience and tackle unique challenges in the Indian ecommerce market. It eliminates points of friction, such as cart abandonment, connectivity, and incorrect passwords, and transforms the payment experience into a faster, secure, and seamless one, allowing consumers to focus on their shopping while helping ecommerce merchants improve their payment success rates.”
While this feature aims at aiding consumers in their small-ticket purchases of up to Rs 2000, Flipkart has several other initiatives and options to facilitate larger expenses.
Apart from VSC, the ecommerce platform also has significantly scaled constructs like Flipkart Pay Later and Cardless Credit which were introduced to help new-to-credit customers enjoy a shopping experience that is seamless and affordable, with the larger goal to onboard the next 200 million customers.
(Edited by Suman Singh)