Cash is one of the oldest and most heavily exchanged commodities on this planet. Every transaction involves the exchange of cash, be it in receipts or expenses. Every other commodity has monetary value attached to it and it is either exchanged for cash or a commodity with equal monetary value since the first ever transaction.
Ever since the launch of the United Payments Interface initiative, there have been many online payment vendors launched in the country. Every payment vendor has integrated the UPI system in their applications. There have also been applications like Simpl and LazyPay, which allow users to purchase goods and services and pay later. All of these payment vendors have brought in a new wave of purely digital transactions, which was earlier only done through banks’ official net banking portals. Now almost every shopkeeper and cab driver has linked their bank account to their respective digital wallet. But is this shift as secure as it is convenient?
In an era where payments are done via a simple QR Code scan, the safety of these payments has been brought under scrutiny many a time. Many fraudsters have impersonated bank employees and online retailers, having swindled many clueless customers to the tune of thousands to lakhs of rupees. Moments like these remind users of how paper currency is more secure, as you pay only on receipt of the goods or services. But carrying cash can also prove to be an unnecessary inconvenience and hassle. Hence, we need to ask ourselves: Are online payments safe for us?
As of 2023, there have been many improvements and fixes in payment vendors. Every user has the option of opting for a two-factor authorization on their wallets. Through this system, whenever there is a payment initiated, a code reaches the wallet’s registered mobile number to verify the authenticity of the transaction. UPI has also ensured that every transaction occurs via a phone with an active SIM card corresponding to the bank account. In the event of a mismatch, the transaction does not proceed. These platforms are also well-encrypted in order to protect their clients’ banking and personal information. Credit and debit cards have an added layer of protection thanks to initiatives by the Payment Card Industry Data Security Standards (PCI DSS). The digital payment industry is not privatized; there are government rules and regulations brought in place to ensure safety and security. A lot of vendors also decide to work with cyber security companies in India and abroad to add extra layers of protection and security to the platform. These software programs also help users identify potential scammers and fraudsters and prevent transactions until the user is absolutely certain of the transaction. Companies like Indian Cyber Security Solutions are brought in to provide their expert services and advices on the issue.
In short, it can be said that the shift from paper to digital currency is well under way. Despite its current shortcomings, online payment is growing and evolving with time, and it is becoming more secure. It brings a large degree of convenience along with it and security as well. Online payment is here to stay.
(The author is Mr. Abhishek Mitra, CEO and Founder (profile attached) of Indian Cyber Security Solutions. and the views expressed in this article are his own)
