There are three problems with cards and online transactions.
1) Someone steals it and uses it for online transactions.
2) Your computer is compromised and/or you're entering your details into a phishing site.
3) The fake merchant you're buying from steals your card details and uses it for online transactions.
Exactly which of these problems does a one time pad solve that a piece of paper with a list of pin codes and numbers does not solve, it just makes it far less usable for the user as far as I can tell. Usability -1, Security -1. (-1 for security assuming that the OTP can be used to guess the user's pin code by trial and error).
On the plus side, I was happily surprised that they didn't deploy chip and pin readers which use telephone touch tones back when chip and pin was deployed in the UK.
(1) and (3) are solvable by using something like ideal (someone else already mentioned it), in Finland we have something like ideal except in order to pay someone from your bank account you go to your own bank's website (redirected from the online shop, including payment details), effectively the same but without the middleman, we only have 4 major banks though. All the banks use a password combined with one time passwords (normally printed on a credit card sized piece of card). Unrelated, but interesting; physical purchases in shops over €50 require identification when using plastic, it's not foolproof but it's a hell of a lot harder to abuse than the UK system.
(2) can be solved by educating the idiots that use the Internet to keep their computer(s) secure, patched and how to recognize a phishing site.