Visa Pauses Single-Click Checkout for Indian eCommerce Transactions

The Reserve Bank of India(RBI) has announced new regulations for digital payments.To raise the bar of digital payment security, Visa has temporarily stopped its single-click checkout service for online transactions in India. The service was introduced in 2019 to provide customers with an easy checkout process when purchasing products online for up to Rs 2000 without requiring the input of OTP(One-time password) or card verification values(CVV).

According to RBI guidelines, a visa voluntarily stopped providing the service in India and developing upgraded authentication solutions. The company told its cardholders they can keep using their cards for eCommerce purchases with one more step of authentication to ensure a secure payment experience.

In 2015, the RBI relaxed the additional criteria of identification necessary for digital payments, allowing card payment providers to offer the single-click checkout option. In 2020, the limit of contactless transactions on the tap-and-pay method was raised to 5,000. But the RBI wants OTP for ‘card not present’ eCommerce transactions,  where the card isn’t actually present at the point of sale. In February 2021, Paytm reported 2,50,000 enrollments within 45 days showing the great success of the single-click checkout process.

However, Visa’s decision to pause the service highlights how crucial it is for digital payments in India. Visa assures its clients that it places a high priority on offering secure, compliant, and safe payment options both in India and internationally

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