Why India should continue 2FA in payments?

Today Sachin Bansal shared an interesting tweet about two-factor authentication as follows.

Apart from promoting UPI, removing 2FA and making credit/debit card issuers solve for fraud using data will take digital payments in India to the next level.

Detection of fraud transactions using AI is one of the use cases many software companies are providing to global banks. These algos reduces the number of frauds to the great extent. Maybe he is planning something in this direction and put it as a teaser.

You know, what is better than detecting frauds via Machine learning, ensuring trust among customers? 2FA used in Indian digital payments. OTP means security for Indian consumers. Removing it means, removing trust from digital transactions. People will minimize the usage of cards. I know colleagues who hate new wireless swipe up to ₹2000 without pin.

A few years ago, I got OTP requests for credit card transactions on an Indian shopping site. I reported it to my card provider and got the card replaced soon. Because of this OTP system, I got saved that day. Without it, I might have lost money, and looking at customer support issues, it might be difficult to get money back. We keep hearing payment frauds even if users have to accept/decline UPI requests.