I agree with your point I have found it hard to prevent merchants from writing down credit card numbers(!!!) and these additional layers of security are needed for the market. On the contrary, though I am a regular user of credit / debit cards for online transactions in India - atleast 3-5 times a month, I have found it really hard to use my credit card from the beginning of the month since they introduced the one-time-password.

I have not been able to use my credit card even once since this was introduced due to various reasons - the SMS service that banks are supposed to deliver One-Time-Password is not sent promptly or I do not have a way to get password to authorize even an IVR transaction in time.

It might all work out after initial issues are resolved but so far I find this to be a pain.