E-wallets gain popularity but susceptible to Ashley-Madison-like attacks

Though payments firms have made transactions much easier, security is a key issue, reports Tech in Asia

Citrus Pay, a Mumbai-based mobile e-wallet, has partnered with local movie theaters to let users order popcorn and other snacks, then pay for them with one touch. It has also developed a prepaid feature that lets users pay for a cab automatically – as soon as the ride is over, the fare gets deducted.
 

There are many zero-click and fewer-click cashless payment systems built by Indian start-ups. “Time is of utmost importance in today’s fast-paced world,” says Citrus Pay managing director Amrish Rau, who was previously the CEO of electronic payment giant First Data. 
 

Payment using social media channels is another prime example of what Indian start-ups are doing differently. 
 

“Cash dominates the bulk of the transactions for purchases and remittances. The usage of alternate payment modes is slowly picking up,” explains Vivek Belgavi, partner and leader of financial services technology consulting firm PwC India.
 

Indian start-ups have built payment solutions for businesses in the hopes of getting people to stop using India’s most popular e-commerce payment option: cash-on-delivery (COD). Cash is used even for e-commerce because most Indian customers don’t feel comfortable making online transactions, according to Amrish. Many local consumers think their money may just vanish into thin air, while others think their products won’t get delivered in the end.
 

Indian regulators have capped the transaction value on mobile e-wallets to Rs 5,000 per transaction and Rs 10,000 per month, which really hits the ceiling on how many of the nation’s cash transactions e-payment firms can replace.
 

People are slowly moving towards using digital and electronic payment modes. However, payment start-ups face challenges such as customer awareness regarding the product and how to use it, fears about security, and concerns about product or service delivery.

This is an excerpt from Tech in Asia. You can read the full article here.