Interswitch Limited, an electronic transaction switching and payment processing company, has introduced a One-Time-Password (OTP) solution for transactions done on the Internet.
This is in compliance with the Central Bank of Nigeria’s policy on the mandatory tokens for some web payments in Nigeria.
Known as Safetoken, the payment processing company said on Friday that the solution would trigger One-Time-Passwords when customers performed payment transactions on the Internet using their cards.
Mr. Charles Ifedi, director, Payment Solutions & Value Added Services, Interswitch said the system generates 6-8 digits OTP whenever a transaction occurs via the Interswitch Web Payment Platform, Webpay that meet some criteria set by the issuer of the card.
The OTP, he said, was an additional level of authentication for customers when using their cards over the Internet.
The essence, he added, was to provide added security for the cardholder and protects customers against unauthorised usage of their cards on the internet.
Ifedi, who explained how it worked, said, “When a customer attempts to perform a web transaction above a set limit, say N3,000 for airtime recharge, the customer is prompted for a One-Time-Password. SMS containing OTP is sent to the customer’s pre-registered phone number. This number is pre-registered with the bank. The Safetoken platform supports the use of hardware tokens, software tokens, grid cards and OTP delivered via SMS or email.”
He, however, warned that to use the Safetoken service, a cardholder must have undergone a pre-registration process.
This, he said, would be done at www.quickteller.com, Automated Teller Machines and bank branches.
According to Interswitch, UBA has implemented the Safetoken SMS and email OTP solution for its customers.
Other banks that are currently implementing the hardware and SMS OTP solution for their customers to improve security of web payments include Access Bank, GTBank, First Bank, FCMB and Zenith Bank