Paytm Announces OTP-Less Offline And Online Card Payments: Is It Secure?

Paytm, the online payments app has launched its OTP-less offline and online card payments feature which will allow users to make online transactions under Rs. 2,000 without any OTP. It seems that the company doesn't want its users to wait for the OTP to arrive via SMS and feed them before the timeout to make the payment. But the question is how secure is this option?

According to Paytm's official blog post "This move will improve the overall payment flow in terms of transaction completion time and success rates while delivering the superior user experience."

According to the company, numerous users transfer less than Rs. 2,000 every day, with the introduction of this new OTP-less single click feature, the app will make the online transaction more convenient for users. The company claims that this is a secure way of online money transfer. To avail, this service users need to enable the service on their saved card or they can add a new card.

Users can avail this service on platforms like Uber, Jio, Zomato and more. All you have to do is to select the card from which you want you to want to make the payment and provide a CVV number and place the payment or order.

Now, the question arises that how safe and secure is this service? OTP makes sure that the transaction is done by an authorised person, and it adds a layer of security to your online transaction. Users get the OTP if someone else is trying to make a transaction from their card or account, removing this feature might increase the chance of misuse.

There is a fine chance of people making use of your card details to make some series of small transaction. There are many reports which proved that debit and credit card details are easily available on the dark web. Let's see how Paytm is going to deal with the security of their users by removing the OPT option.