October 26, 2019 By King
VSC is a lightweight, secure software plug-in for mobile app-based e-commerce merchants. For transactions up to Rs 2,000, shoppers don’t need an OTP as the solution uses cryptographic validation along with Visa’s global risk engine to authenticate each transaction.
The RBI had relaxed norms for transactions below Rs 2,000 in 2016, allowing the payment networks to do the second factor authentication without using OTP. VSC is designed as a frictionless payment solution for e-commerce, which is built exclusively for the Indian market.
VSC will be launched this festive season across leading e-commerce merchants to provide consumers a secure and seamless payment experience. Flipkart is understood to be one of the early adopters. In a transaction with OTP, the customers is taken out of the e-commerce website to a payment gateway to complete the transaction.
This adds two more legs to the transaction and increases the chances of a failure particularly when traffic is high.
“The Indian e-commerce market is expected to reach US$1.2 trillion by 2021. However, digital payment success rates are trending below 80%, resulting in suboptimal consumer experience and a significant revenue loss for the e-commerce industry. E-commerce merchants are grappling with an ever-growing number of consumer issues such as cart abandonment, connectivity and incorrect passwords during the payment leg of their transaction,” said T R Ramachandran, group country manager, Visa (India and south Asia), said.