Route Mobile Ltd is in discussions with large e-commerce and payment platforms to enable a solution that will authenticate financial transactions without the need for a one-time password (OTP), a top executive said. At the same time, he said it would be safe since the solution would arm telcos with a mechanism to identify the nature of a transaction, and act as an additional layer of security to sift genuine transactions from potentially fraudulent ones. Of course, if the talks work out, such a solution would need to pass through several regulatory hoops before launch.
“This is a digital identity solution which we will be able to launch very soon. Some companies are looking to introduce this for all their financial transactions, while some microfinance and fintech companies want to use it to lower their risk (of lending)," Tushar Agnihotri, Route Mobile’s head of India operations and Asia region, said in an interview. The solution comes from Telesign, owned by Belgium-based Proximus Group, a provider of digital services, communication and technology solutions.
In July, Proximus signed a definitive agreement to acquire 57.5% in Route Mobile for ₹5,922 crore. The combined entity of Route Mobile and Telesign is expected to have an annual revenue of €900 million. The deal is yet to be completed.
The technology has huge potential and is being tested in two countries, Agnihotri said, adding it has had great response. “We need now to bring it to India and ensure that it fits in the framework of Indian data privacy laws, because telcos are reselling or monetizing the data that they have. We need to understand the legal framework very well around this product, but we simultaneously believe that this can dramatically reduce NPAs,. Read more on livemint.com