I’m sick and tired of passwords but authenticators have been very slow to adopt the authentication solutions already in our smartphones – like face recognition and fingerprints. So PayPal takes an early lead over traditional card networks by embracing Android’s security model for PayPal payments in India.
PayPal uses Androids Smart Lock function so the phone will open automatically when a payment needs to be made. Once unlocked, the user will be challenged using a two-factor authentication (2FA) process that isn’t clearly identified in the article. I hope PayPal is using the FIDO compliant 2FA built into Android (https://developers.google.com/identity/fido/android/native-apps).
“PayPal India, today, launched its popular OneTouch experience in India using Google Smart Lock. This allows Indian consumers to register their Android device with PayPal and enables them to stay logged into the platform for all subsequent PayPal purchases on that device. The feature now removes the hassle of repeatedly needing to log in and thereby offering a frictionless payments experience. Consumers once logged in will still need to go through the 2FA step to complete the transaction as per applicable regulations.
With One Touch, consumers will no longer have to retrieve their credit and debit card details to make purchases on their smartphones. The integration with Google Smart Lock will enable greater convenience while maintaining security, by keeping their phones or tablets locked when it is not with them and thereby reducing the possibility of fraud.
Speaking at the launch, Narsi Subramanian, Director, Growth, PayPal India stated, ‘As payment systems evolve, it is essential for the platforms to simplify the process and render better user experiences for consumers while paying online. At the same time, it is critical that customers feel secure in making their transactions as well. The One Touch feature along with Google Smart Lock addresses both of the above and aligns with our vision of offering a frictionless payments experience.’ ”
The article also describes PayPal’s Buyer Protection implementation as well as government relationships it has established in India.
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group