India's e-commerce giant Flipkart on Monday announced the launch of Visa Safe Click (VSC), powered by Visa, to provide its customers with first in-app device-based network authentication solution.
This feature will eliminate the need for One Time Passwords (OTP) for online transactions up to ₹2,000, while also ensuring a completely secure payment experience.
This move, Flipkart hopes, will 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.
"OTP-based authentication is one of the biggest points of friction in online card transactions, wherein we have observed significant customer drop-offs, said Ranjith Boyanapalli, Head, Fintech and Payments Group at Flipkart.
"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," Boyanapalli said in a statement.
The e-commerce giant further stated that simplified fintech solutions and easy accessibility are the need of the hour. Moreover, Flipkart has ramped up the distribution reach of its offerings to enable credit access and affordability options for shoppers across the country.
"As the Indian e-commerce market is expected to grow exponentially over the next few years, digital payment success is likely to be a crucial driving factor behind adoption of online shopping," said T R Ramachandran, Group Country Manager, Visa India and South Asia.
Products like Flipkart Pay Later and Cardless Credit have been 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.
"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," added Ramachandran.