Visa Rolls Out OTP-less Payment Method for Partner Customers

New Delhi, India Jul 3, 2026 ALN: Global payment technology company Visa has launched the Visa Payment Passkey (VPP), an innovative payment facility that eliminates the need for One Time Passwords (OTPs) for credit card holders of partner firms. This new feature was announced on Thursday and aims to streamline the payment process while enhancing security.

With the VPP, users can authenticate their transactions using familiar methods such as fingerprint scans, facial recognition, PINs, passwords, or patterns. This shift means that cardholders will no longer need to rely on OTPs to verify their payments, making the transaction process quicker and more user-friendly.

The introduction of this payment solution follows the Reserve Bank of India’s proposals aimed at creating alternative authentication methods. Currently, the VPP is live for IDFC First credit card users and has also been made available to select customers of several partner firms, including Myntra, Paytm, MakeMyTrip, Tata Starbucks, Reliance Digital, and EatSure (Rebel Foods). Additionally, a robust network of fintech partners such as Juspay, Wibmo, Razorpay, PayU, Pine Labs, BillDesk, and M2P Fintech are involved in this initiative.

Ramakrishnan Gopalan, Head of Products for India and South Asia at Visa, emphasized the importance of security in the payment process. He stated, “Wherever you feel safe to save your card credentials, today you go and tokenise your card credentials. That’s exactly the same way how authentication is going to play out. Whichever merchant apps you use, we will allow you to register yourself biometrically and then that gets used subsequently during the transaction phase.”

This rollout is part of a broader trend in the payment industry, as other payment solution providers like Razorpay and Mastercard have also announced similar mechanisms for payment verification. The move towards OTP-less transactions is expected to enhance user experience while maintaining high security standards.

To understand the significance of the Visa Payment Passkey, it is essential to consider the historical context of payment authentication methods. Traditionally, the use of OTPs has been a common practice for verifying online transactions. An OTP is a unique code sent to the user’s registered mobile number or email, which must be entered to complete a transaction. While this method has been widely adopted due to its perceived security benefits, it has also faced criticism for being cumbersome and prone to issues such as delays in receiving codes or problems with mobile connectivity.

In recent years, the Reserve Bank of India has been proactive in encouraging the adoption of more advanced and user-friendly authentication methods. The central bank has recognized the need for a more seamless payment experience, particularly as digital transactions continue to rise. With the increasing prevalence of e-commerce and mobile payments, the demand for efficient and secure payment methods has never been higher. The VPP aligns with these needs by providing a more intuitive authentication process that leverages technology already familiar to users.

Furthermore, the COVID-19 pandemic accelerated the shift towards digital payments, as consumers sought contactless and convenient ways to conduct transactions. In this landscape, the introduction of the VPP aligns with consumer expectations for speed and security. By allowing users to authenticate transactions through biometric methods or established credentials, Visa is aiming to reduce friction during the payment process. This is particularly relevant in a post-pandemic world where contactless transactions have become the norm.

Moreover, the involvement of various fintech partners in the rollout of the VPP indicates a collaborative effort to enhance the payment ecosystem. These partnerships are crucial, as they bring together expertise from different sectors of the financial technology landscape. Fintech companies have been at the forefront of innovation in payment solutions, and their collaboration with established players like Visa can lead to more robust and secure offerings. The synergy between traditional banking institutions and fintech firms is essential for fostering innovation and ensuring that new solutions meet the evolving needs of consumers.

In addition to improving user experience, the VPP also addresses growing concerns about fraud and data security. As digital transactions increase, so do the risks associated with them. Cybercriminals are continuously developing new tactics to exploit vulnerabilities in payment systems. By moving away from OTPs, which can be intercepted or stolen, Visa is taking a proactive approach to mitigate these risks. The reliance on biometric and token-based authentication methods can significantly enhance security by making it more difficult for unauthorized users to gain access to sensitive information.

However, the transition to OTP-less payment methods is not without its challenges. Users must adapt to new authentication methods, which may require a learning curve. Additionally, there will be a need for ongoing education and awareness campaigns to ensure that consumers understand how to use the VPP securely. Visa and its partners will likely need to invest in customer support and resources to facilitate this transition. Ensuring that users feel comfortable and confident in using new technologies is crucial for widespread adoption.

The implications of this shift extend beyond just Visa and its partner firms. As other payment processors and financial institutions observe the rollout of the VPP, they may be encouraged to explore similar alternatives to OTPs. This could lead to a broader industry trend towards more biometric and token-based authentication methods, fundamentally changing how consumers interact with their finances. The potential for a widespread adoption of such technologies could also spur further innovation in payment solutions, creating a competitive landscape that prioritizes user experience and security.

In conclusion, the launch of the Visa Payment Passkey represents a significant advancement in the payment technology landscape. By eliminating the need for OTPs and incorporating biometric authentication, Visa is not only enhancing the user experience but also addressing critical security concerns. The collaboration with various fintech partners and the alignment with regulatory proposals further strengthen the potential impact of this initiative. As the payment industry continues to evolve, the VPP could serve as a model for future innovations aimed at creating a more secure and efficient digital payment ecosystem. The success of this initiative could pave the way for similar developments in other regions, ultimately leading to a more unified and secure approach to digital payments worldwide.