New patent brings tap-and-go card authentication to online checkouts without CVV entry.
CEO Amrish Rau says the feature will appear across e-commerce and delivery apps soon.
The announcement comes as Pine Labs reports strong Q2 FY25 growth and returns to profitability.
Pine Labs, an Indian fintech startup seems to be pushing its limits in the online payments space. The company has secured a patent for a tap-and-go method that lets users authenticate transactions by tapping their physical card on their own smartphones. This will eliminate the need to manually enter a card’s CVV or verification details, aiming to make online checkouts faster and more secure.
SurveyTaking to social media platform X, Chief Executive Officer Amrish Rau described the patent as a breakthrough moment for digital payments in India. He stated that users will soon notice a “tap to pay online” option on checkout pages across e-commerce, food delivery apps and other online platforms. Once the user selects the phone’s near field communication, NFC hardware activates and the user can simply place their card against the device to complete the transaction.
Rau explained that the idea takes the simplicity of contactless offline payments and applies it to online shopping, eliminating one of the most significant friction points: repeatedly entering card details. Pine Labs hopes that by switching to a tap-based authentication method, it will reduce failed transactions and abandoned carts, both of which are prevalent in India’s online commerce landscape.
The patent comes at an important time for Pine Labs, which recently reported strong financial results for the September quarter. The newly listed fintech firm returned to profitability in Q2 FY25, with a consolidated net profit of Rs 6 crore, up from a loss of Rs 32 crore in the same period last year.
Revenue from operations increased nearly 18 per cent year on year to Rs 650 crore, owing to higher merchant payment volume and the steady expansion of its digital payments ecosystem. Operating earnings also improved significantly: EBITDA increased to Rs 75.4 crore from Rs 36 crore a year ago, with margins widening to 11.6 per cent from 6.5 per cent . The company attributed the increase to lower depreciation costs and ESOP-related expenses.
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Ashish Singh
Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile
