In a bid to ease the online shopping process, the Delhi-based ecommerce firm, Snapdeal has pitched for single-factor authentication regime for small value transactions, starting initially with a cap of INR 3,000.
At the moment, two step procedure is valid in the country wherein first step is the entering of PIN which is followed by punching-in of a secure One Time Password (or OTP).
Speaking on this demand, Kunal Bahl, Founder and Chief Executive, Snapdeal said, “I think RBI should follow it in steps. May be the first step should be somewhere around the INR 3,000 mark. Once the RBI gets confident about its working and if there are no instances of fraud, the same limit can be taken up to INR 10,000. However, the limit should not be set at an insignificantly small amount.”
There has been a continuous demand to replace two-factor authentication with single authentication payment for low value ecommerce transactions from every section. Keeping a note of it, RBI had indicated to introduce a single authentication payment for low value ecommerce transactions without making any compromises on the security.
If implemented, this move will come as great news for SaaS and marketplace based Indian startups that have been struggling to take automated payments or have been moving out of India to get a recurring payment gateway.