The continued successful growth of digital payment volumes and consumer confidence will require providers of digital payments infrastructure to ensure they are operating stable, and high-capacity systems.
44 per cent respondents said that failed transactions are a top concern when it comes to digital payments. (Bloomberg image)
Digital payments in India crossed the 200 crore transactions mark in the month of October 2020, however, the possibility of a failed transaction is still the biggest worry among Indian consumers. In a survey conducted to map the trend of payment systems this festive season, 44 per cent respondents said that failed transactions are a top concern when it comes to digital payments. “While there is an overwhelming consensus that ease of use of digital payments is increasing, and merchant acceptance has improved since a year ago, some consumer concerns highlight challenges that lie ahead for banks and payment providers,” said Kaushik Roy, Vice President & country leader — South Asia, ACI Worldwide.
The continued successful growth of digital payment volumes and consumer confidence will require providers of digital payments infrastructure to ensure they are operating stable, and high-capacity systems, Kaushik Roy added. Among other major concerns, there are fewer consumers concerned about internet connectivity for completing digital transactions compared to last year, and fewer are concerned about merchant acceptance infrastructure. However, privacy is still a burgeoning concern among 37 per cent users, revealed the ACI Worldwide-YouGov report.
The most common fraud-related concern is fake apps or websites that are part of a scam, cited by 42 per cent of respondents. On the other hand, 40 per cent respondents are worried about fraudulent KYC (Know Your Customer) updates and fake UPI payment links. Although digital payments are the preferred payment method, 45 per cent of respondents consider cash and payment on delivery as the most secure, ahead of digital, cards, and internet banking.
Meanwhile, the advantages and ease of using digital payments have outpassed the concerns as 85 per cent believe that it is easier to use digital payments when making purchases in-store or at merchant locations and that more stores are now accepting digital payments, compared to last festive season. Digital payments were used by 57 per cent of respondents more than twice per week for festive season purchases, rising from 43 per cent a year ago.