comscore Digital payment providers to fix firewalls as transactions swell
News

Digital payment providers to fix firewalls as transactions swell

With the rise in digital payment, the cyber vulnerability in the payment gateways of e-wallet companies is also increasing.

  • Published: January 12, 2017 11:00 PM IST
mobile-wallet-stock-image

At a time when the cyber vulnerability in the payment gateways of e-wallet companies are becoming visible as they witness a rise in usage and popularity, upgraded security is the only way to safeguard millions of first-time users.  In December, the Central Bureau of Investigation (CBI) registered a case against 15 Paytm customers for allegedly cheating the digital wallet of Rs 6.15 lakh ($9,000). This was done on a complaint by Paytm’s parent company One97, which is backed by China’s Alibaba Group. Also Read - How to book COVID-19 vaccine slot via Paytm App, get Covaxin and Covishield shots with these simple steps

Also Read - Alert! Paytm cashback scam: Fake Paytm website, it's a trick to steal your money

The case was registered under various sections dealing with criminal conspiracy, forgery, etc. — and under provisions of the Information Technology (IT) Act. According to top company executives, wallet security has been a prime concern for them post-demonetisation as transactions have grown manifold. Also Read - 5 apps helping people get through the COVID-19 second wave: Twitter, CoWIN, Aarogya Setu

“No one can actually hack into our servers and steal data or money because there are different levels of security,” Deepak Abbot, Senior Vice President at Paytm, told IANS, adding that they have intrusion-detection program by third-party security experts that regularly check the systems for any vulnerability.

Paytm claims to have over 177 million users (as of December 2016) and have handled nearly one billion transactions last year. According to Abbot, the number of transactions at Paytm is up three times as compared to the numbers recorded before demonetisation and the volume has grown 3.5 times.

“Paytm saw 14-15 percent growth month-on-month even before demonetisation. When the cash situation improves in the country, we may not see a 100 per cent growth, but we will settle for a much higher percentage of growth,” Abbot told IANS. Abbot pointed out that the Paytm wallet is PCI-DSS certified which is a proprietary information security standard for organisations dealing with online transactions.

“As per the RBI guidelines, every wallet needs to keep the users’ money in an escrow account. So even if the escrow account is of Paytm, the company cannot access it. Also, on a daily basis, the company has to share the transaction data with RBI. We are as transparent as can be because of the rules and regulations,” Abbot noted. According to Rohan Khara, Director of Product, MobiKwik, their user base has crossed 45 million and they are witnessing five million transactions daily.

“MobiKwik takes security very seriously. It is PCI-DSS and ISO27001 certified, takes care of the various information security measures to ensure the security of application and protects its business from emerging threats and frauds,” Khara told IANS. “We are soon launching a PIN with which users can access their account through an alternate number in case of a lost phone,” Khara added.

Digital payments platform FreeCharge recently announced India’s first e-wallet protection plan for its users. Under this, the underlying wallet balance of all the customers will be insured up to a limit of Rs 20,000 as long as the user is transacting at least once a month. “The facility, in partnership with Reliance General Insurance Company Limited, will be offered free-of-cost to all users. This move by FreeCharge is another step in safeguarding the money in the event of theft or loss of phone,” Govind Rajan, Chief Executive Officer, FreeCharge, told IANS.

The number of cards and addresses saved on digital payments platform FreeCharge has now crossed 70 million. Since demonetisation, FreeCharge saw frequent users jump from about five times a month to more than 15 times a month. It has also seen a fourfold surge in web traffic and a threefold surge in app downloads. FreeCharge was seeing a 15 percent month-on-month growth (average daily) on consumer acquisition pre-demonetisation, and now it has grown to 200 percent.

Security experts emphasise that as the numbers grow, newer forms of vulnerabilities will be exposed in the payment gateways, suggesting that upgraded security is the only way to safeguard small and medium businesses from losing their hard-earned money. According to Abbot, first-time users are more exposed to digital frauds. “Just like customers reveal their passwords or OTPs in the banking system to unidentified people, they are doing it in the case of mobile wallets as well. Fraudsters are calling people saying they are from Paytm and extracting money from the users,” Abbot pointed out.

Citing the main reason why bank apps have not fared well till date, Abott said banks have the consumers but they do not have the merchant base. “With Paytm having nearly 65 per cent market share, we are absolutely not worried about the competition because it takes time to build a base. In fact, we will be happy if a worthy competitor comes up,” Abbot told IANS.

Written by Nishant Arora and Sourabh Kulesh from IANS

BONUS VIDEO: Lenovo P2 Review

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel. Also follow us on  Facebook Messenger for latest updates.
  • Published Date: January 12, 2017 11:00 PM IST



new arrivals in india

Infinix Note 10
Infinix Note 10

10,999

Vivo Y73
Vivo Y73

20,990

OnePlus Nord CE 5G
OnePlus Nord CE 5G

22,999

iQOO Z3
iQOO Z3

19,990

Realme C25s
Realme C25s

9,999

Poco M3 Pro 5G
Poco M3 Pro 5G

13,999

Realme X7 Max 5G
Realme X7 Max 5G

26,999

Oppo F19
Oppo F19

18,990

Motorola Moto G40 Fusion
Motorola Moto G40 Fusion

13,999

POCO M2 Reloaded
POCO M2 Reloaded

9,499

OPPO A74 5G
OPPO A74 5G

17,990

Oppo A53s 5G
Oppo A53s 5G

14,990

Vivo V21 5G
Vivo V21 5G

29,990

Realme C25
Realme C25

9,499

Realme C21
Realme C21

7,999

Realme C20
Realme C20

6,799

Motorola Moto G60
Motorola Moto G60

17,999

iQOO 7
iQOO 7

31,990

Samsung Galaxy M42 5G
Samsung Galaxy M42 5G

21,999

Xiaomi Mi 11 Ultra
Xiaomi Mi 11 Ultra

69,999

Xiaomi Mi 11X Pro 5G
Xiaomi Mi 11X Pro 5G

39,999

Xiaomi Mi 11X
Xiaomi Mi 11X

29,999

Realme 8 5G
Realme 8 5G

13,999

Samsung Galaxy F02s
Samsung Galaxy F02s

8,999

Samsung Galaxy F12
Samsung Galaxy F12

10,999

POCO X3 Pro
POCO X3 Pro

18,999

Realme 8 Pro
Realme 8 Pro

17,999

Realme 8
Realme 8

14,999

Vivo X60 Pro Plus
Vivo X60 Pro Plus

69,990

Vivo X60 Pro
Vivo X60 Pro

49,990

Vivo X60
Vivo X60

37,990

OnePlus 9 Pro 5G
OnePlus 9 Pro 5G

64,999

OnePlus 9R 5G
OnePlus 9R 5G

39,999

OnePlus 9 5G
OnePlus 9 5G

49,999

Samsung Galaxy A72
Samsung Galaxy A72

34,999

Samsung Galaxy A52
Samsung Galaxy A52

26,499

Micromax In 1
Micromax In 1

10,499

Asus ROG Phone 5
Asus ROG Phone 5

49,999

Samsung Galaxy M12
Samsung Galaxy M12

10,999

Motorola Moto G30
Motorola Moto G30

10,999

Motorola Moto G10 Power
Motorola Moto G10 Power

9,999

Oppo F19 Pro Plus 5G
Oppo F19 Pro Plus 5G

25,990

Oppo F19 Pro
Oppo F19 Pro

21,490

Xiaomi Redmi Note 10 Pro Max
Xiaomi Redmi Note 10 Pro Max

18,999

Xiaomi Redmi Note 10 Pro
Xiaomi Redmi Note 10 Pro

15,999

Xiaomi Redmi Note 10
Xiaomi Redmi Note 10

11,999

Realme Narzo 30A
Realme Narzo 30A

8,999

Realme Narzo 30 Pro
Realme Narzo 30 Pro

16,999

Infinix Smart 5
Infinix Smart 5

7,199

Samsung Galaxy F62
Samsung Galaxy F62

23,999

Samsung Galaxy A12
Samsung Galaxy A12

12,999

Nokia 5.4
Nokia 5.4

13,999

Nokia 3.4
Nokia 3.4

11,999

Realme X7 Pro 5G
Realme X7 Pro 5G

29,999

Realme X7
Realme X7

19,999

Vivo Y31
Vivo Y31

16,490

Oppo Reno5 Pro 5G
Oppo Reno5 Pro 5G

35,990

Samsung Galaxy S21 Ultra 5G
Samsung Galaxy S21 Ultra 5G

1,05,999

Samsung Galaxy S21 Plus 5G
Samsung Galaxy S21 Plus 5G

81,999

Samsung Galaxy S21 5G
Samsung Galaxy S21 5G

69,999

Vivo Y12s
Vivo Y12s

9,990

Vivo Y51A
Vivo Y51A

17,990

Samsung Galaxy M02s
Samsung Galaxy M02s

8,999

Xiaomi Mi 10i
Xiaomi Mi 10i

21,999

Oppo A15s
Oppo A15s

11,490

Tecno Spark 6 Go
Tecno Spark 6 Go

8,499

Vivo V20 2021
Vivo V20 2021

24,990

Vivo Y20A
Vivo Y20A

11,490

Xiaomi Redmi 9 Power
Xiaomi Redmi 9 Power

11,999

Motorola Moto G9 Power
Motorola Moto G9 Power

11,999

Motorola Moto G 5G
Motorola Moto G 5G

20,999

Vivo V20 Pro
Vivo V20 Pro

29,990

Xiaomi Mi 10T
Xiaomi Mi 10T

35,999

Xiaomi Redmi 9i
Xiaomi Redmi 9i

8,299

Xiaomi Mi 10T Pro
Xiaomi Mi 10T Pro

39,999

Infinix Hot 10
Infinix Hot 10

9,999

Vivo V20 SE
Vivo V20 SE

20,990

Vivo V20
Vivo V20

24,990

Micromax In 1b
Micromax In 1b

6,999

Micromax In Note 1
Micromax In Note 1

10,999

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

13,999

Oppo F17
Oppo F17

16,990

Samsung Galaxy M51
Samsung Galaxy M51

22,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Xiaomi Redmi 9A
Xiaomi Redmi 9A

6,799

Vivo Y20
Vivo Y20

12,990

Xiaomi Redmi 9
Xiaomi Redmi 9

8,999

Nokia 5.3
Nokia 5.3

13,999

Best Sellers