For Net Banking transactions, OTP continues to be a very popular 2-factor authentication mechanism. The primary device being used is a desktop computer or a laptop. The one-time password is being sent on a completely different device (out-of-band) and hence it serves as a strong 2FA approach. For Mobile Banking transactions, the primary device used for transactions and the device for receiving OTP is the same. So, this is not out-of-band. Hence it may be considered as a weak 2FA approach. How do different companies resolve this problem ?
India has arrived. Compared to many other countries where electronic payment systems are still evolving, we are proud to have been gifted a state-of-the-art IMPS – Immediate Payment Service which allows any Indian with a bank account to transfer money to any other Indian with a bank account at any time of the day using almost any kind of device be it laptop, smart phone, feature phone etc.
India is enjoying the benefits of e-commerce in a big way. Almost any item can be ordered through established online retailers. However, 45% of these transactions are said to be COD – Cash on Delivery.
When the first mobile banking app was introduced about eight years ago, there were probably around 10-12 services. The most common services were Balance Enquiry, Mini Statement, Cheque Book Request, Cheque Status, Funds Transfer (within and outside the bank), Bill Payment, ATM Search, Branch Search, Information Services and Service Requests. Today’s mobile phone and the mobile apps are capable of supporting more than 100+ services.