Why India Is Exploring OTP-Less Payments
One-Time Passwords (OTPs) have been the backbone of digital payment authentication in India for years. Every UPI transaction, wallet payment, or bank transfer has relied on an OTP sent to a mobile number. While this method is secure, it also adds a step that often disrupts the smooth flow of everyday payments.
As users grow accustomed to instant digital experiences—from scanning QR codes to sending money in seconds—there’s growing interest in removing the OTP step for low-risk, routine transactions. This trend is not just about speed. It’s about removing needless friction so payments feel as natural as handing cash to a neighbourhood shopkeeper.
Reduced Friction Improves Everyday Use
Every extra tap adds delay and frustration. For frequent, small-value payments—tea, bus fare, local groceries—re-entering an OTP feels like overkill. Users, especially in Tier-2 and Tier-3 areas, adopt digital payments more when they feel seamless and predictable, not interruptive. Friction-reducing designs are core to this shift toward Frictionless Payments.
Trusted Devices Offer New Signals
Modern devices and apps already capture multiple signals showing that the device and user are legitimate. Trusted device identifiers, app integrity markers, and sustained usage patterns all contribute to confidence that a transaction is authentic without an OTP interrupting the flow.
Global Trends Reinforce the Case
Countries with mature digital ecosystems are already experimenting with OTP-less or biometric-led approvals for small payments. India’s large UPI footprint makes it natural to consider similar evolutions.
Insight: What feels like a simple step removed—OTP—actually reflects a bigger shift toward intuitive, device-centric authentication.How OTP-Less Payments Would Work
Removing OTP does not mean removing security. It means replacing it with stronger, context-aware signals that confirm authenticity without asking users to pause and re-type a message.
The goal is to make approval easier without making it less reliable.
Trusted Device and App Signals
A phone that has been used consistently for UPI or wallet payments, with verified SIM, strong app signatures, and regular usage patterns, builds an internal trust profile. This profile can support authentication without needing an OTP for every payment—a form of Authenticity Assurance.
Biometric Approvals
Fingerprint or face recognition at the app level can confirm that the authorised user is initiating the payment. These biometric prompts are already used in many apps for login and high-risk actions and can scale to replace OTPs for low-risk payments.
Risk-Based Conditional Flows
Not all payments would be OTP-less. High-value or unusual transactions could still trigger stronger authentication. Systems would use risk scoring to decide when OTP is truly needed.
- Device-based trust signals
- Biometric confirmation options
- Risk-aware fallbacks
- Contextual decisioning
Where Users Still Need Caution
Any shift that removes a visible security step raises questions. Users must understand both the benefits and the limits of new models.
Misplaced Confidence Can Backfire
Seeing no OTP prompt may feel easier, but users should not assume the system is “less secured.” The background checks are usually stronger, not weaker, and users should stay alert for unusual activity—especially when Security Perceptions lag behind actual safeguards.
Shared Devices Increase Risk
In households where phones are shared, reliance on device-based trust without OTP can create vulnerabilities if biometric locks or app protections are not strong.
Fallbacks Still Exist
When signals are ambiguous, systems revert to OTP or additional confirmation. Users should see this as a safety feature, not a failure.
- Phishing attempts remain relevant
- Device loss raises exposure
- App permissions matter
- OTP fallbacks maintain security
What This Means for Everyday Payments
OTP-less payments are not about removing safeguards—they’re about embedding them more intuitively so that users feel both safe and effortless in their daily transactions.
Smoother Daily Transactions
Paying at local stores, bus counters, or quick services becomes faster and less cognitively demanding, making digital money as instinctive as cash.
Security Built Into Systems, Not Screens
When trust is anchored in devices, usage patterns, and risk signals, visible interruptions fade into the background. This supports long-term digital payment adoption without sacrificing safe behaviour—strengthening Trust Building.
Gradual User Education Is Key
For this shift to succeed, users must be educated about when OTPs won’t appear and why—and when they still matter. Clear communication matters as much as technical change.
- Fewer OTP prompts for routine use
- Contextual risk checks when needed
- Stronger device protections encouraged
- More intuitive everyday payments
- Empowered users with awareness
Frequently Asked Questions
1. What are OTP-less payments?
Payments authorised without entering a one-time password, using trust and device signals instead.
2. Are OTP-less payments secure?
Yes, because they rely on device trust and risk evaluation rather than simple codes.
3. Will all payments drop OTPs?
No, high-risk and unusual transactions may still require OTPs.
4. Do users need special apps?
Yes, the UPI or wallet app must support OTP-less flows.
5. Can OTP fallbacks still occur?
Yes—systems revert to strong checks when needed.