Online Payments Now Possible Without an OTP! Learn What 'Silent Authentication' Is and How It Works

Online Payments Without OTP: Thanks to 'Silent Authentication' technology, online payments can now be completed without the need for an OTP. Under this technology, the system itself will verify the SIM card and the registered mobile number to prevent fraud.

Online Payments Will Be Possible Without an OTP: Major private banks and telecom companies across the country are currently working on 'Silent Authentication' technology, which aims to eliminate the need for One-Time Passwords (OTPs) in digital transactions. Under this system, the technology will perform a background check to determine whether the mobile number registered within the banking app matches the SIM card currently inserted in the phone. If the registered number and the SIM card do not match, the transaction will be blocked immediately.

A key feature of this technology is that it requires no action whatsoever from the user; furthermore, it is compatible with eSIMs, thereby helping to prevent fraud schemes such as SIM cloning and eSIM swapping. Sameer Shetty, Head of Digital Business at Axis Bank, stated that banks and telecom companies are collaborating on several pilot projects. If a user is logged into a banking app but their current mobile number does not correspond with the registered number on file, the telecom network will flag this discrepancy, thereby enabling the detection of potential fraud.

What Are the New RBI Regulations?

According to Sundareswaran Krishnamurthy, Cyber ​​Leader at PwC India, the security layer is now being shifted to the core of the network infrastructure. Additional features—such as Face ID and in-app code generation—are also being integrated into this framework. Under the new regulations issued by the Reserve Bank of India (RBI), Two-Factor Authentication (2FA) is now mandatory for all digital transactions. This typically involves a combination of factors, such as a password or PIN, an OTP or in-app code, and biometric identifiers (e.g., facial recognition or fingerprints). While SMS-based OTPs have not been discontinued entirely, banks are being encouraged to adopt fingerprint-based and device-centric security measures.

Transactions to Become Easier and More Secure

Following the new regulations, banks will now be able to utilize third-party apps—such as WhatsApp—to send OTPs. Nitin Singhal, MD of the cloud communications company Sinch, stated that this will enhance the customer experience, reduce transaction failure rates, and simplify the checkout process for brands, thereby boosting customer trust and digital adoption.