Are Digital Financial Services Any Safer Than Traditional Transactions?
This lockdown has accentuated the need for digital payments even more. Yet, while using these platforms, a questions that often pops up in the mind is how safe are they to use and what are the chances of risks and vulnerability?
A recent report said that India was supposed to see a faster growth in mobile transaction payments, especially in terms of value with a CAGR of more than 20% between last year, that is 2019 and 2023. This tentatively reaches out to roughly 600 million Indians. Quite surprisingly and coincidentally, India is likely to contribute around 2.2% to the digital payment market of the world.
India Transact Services Ltd. (ITSL), a subsidiary of AGS Transact Technologies Ltd. is an Omni-channel merchant digital payment solutions company that aims to consistently simplify the process of Transacting, Merchant Acquisition and Value Added Services. India Transact provides multiple payment acceptance options – device-based as well as device-less. Sunil Khosla, President, Digital Business, India Transact Services Limited, delves deeper into the use of mobile payments services during the lockdown and also tells us how safe are e-wallets to use.
How can one migrate to mobile payments during the lockdown?
To switch to mobile payments mode, the most important resource that one must-have is a smartphone wherein your phone number should already be linked to your bank account. There are very simple steps involved like downloading the mobile banking app of your bank or also add third-party payments apps that offer hassle-free payment solutions.
There are various options for making payments in the app – including payments through Net Banking like IMPS and NEFT. Many banks have also integrated UPI, bill payments and e-commerce links in the bank app itself or one can also use third-party apps like Google Pay, PhonePe etc. Another very common and easy mode of digital payment is via Debit or Credit Card and use of e-wallets like PayTM, Amazon Pay, MobiKwik etc. All these options are available 24×7.
Is it safe to use a credit card on the internet?
It is 100% safe to use the credit card provided the user is vigilant and follows the rules mandated by the bank. One should always take the necessary precautions to prevent any fraud. It is recommended not to write the card information, OTP or passwords anywhere or share it with anyone. CVV should necessarily be kept confidential. It is essential that thephone number in use is linked with the credit card to receive real time transaction updates.
How to use e-wallets safely?
Keeping yourself aware of different hacks that can occur while making payments digitally can be an added advantage. e-wallet apps should be necessarily downloaded from a trusted source such as App Store/Google Play Store only. Select a strong password that is tough to guess, tricky and change it after frequent time intervals. For a safer experience, add only the necessary amount from your bank account to your e-wallet.
Sometimes you enter the wrong phone number for transferring the money and it is received by some other person. This can lead to hassles and reversal process can be cumbersome. To eliminate such mistakes, QR Codes should be used instead of transferring money to others or paying merchants using a mobilenumber. Check wallet Transaction History (Passbook) regularly. Set additional App Lock and restrictions for third-party apps to grant limited access.
What are the safe/secure habits while using digital financial services?
Fraud is a global multimillion-dollar syndicate trying to outsmart the formal system. Hence, it is important that as consumers and service providers, we stay ahead of the game. For consumers who pay online, one should never share online payment credentials such as CVV, OTP etc. and change all related passwords frequently. It is very crucial to check the authenticity and use of trusted and authorised third-party apps for payments.
It is a vital shop online only through gadgets that have anti-virus/anti-malware software installed. We strongly recommend double-checking the mobile number/account number while making payments. Nowadays, public Wi-Fi networks are targeted by fraudsters to pull important financial information. It is recommended not to use public Wi-Fi while using digital payment modes. Never save your credentials on a public computer. While making payments through swipe machines make sure it is handled by the merchant only and is kept at a safe place for secure transactions. By keeping these points in mind one can surely protect themselves from fraud/cheating.
How are digital financial services safer than traditional transactions?
The new-age digital payment options are considered much safer than the traditional transactions because of the multiple security/identification phases. There is a much lower risk of money being lost or stolen. Digital payment forms are encrypted for better security. Fraud detection is easier since transaction history can be checked within seconds. Transactions can also be secured with biometric recognition in the case of UPI.
Additionally, during this time of the pandemic, digital payment options have proven to be of great assistance and have ensured smooth transactions while maintaining social distancing and taking due precautions. Few digital payment options are contactless and due to no physical contact, there is reduced probability of contracting the Covid-19 virus.
