Convenience is one of the benefits of digital payment solutions, but most users encounter glitches when using payment solutions digitally.
Here are some of the issues that digital payment solutions face:
Cyber Security fraud:
The main issue faced by users of digital payment solutions is the increased likelihood of being defrauded by fraudsters. The most significant and well-known is the instance of thieves obtaining a user’s credit card information through a data breach. By tricking consumers into providing crucial internet information, they can access users’ accounts.
Also, they profit from weak authentication in online payment systems.
Digital payment fraud simply refers to any type of fraudulent transaction carried out by a hacker or other online criminal; It may include phishing, identity theft, and other types of fraud.
Identity theft occurs when a cybercriminal steals your personal information by spoofing the payment to conduct illegal online transactions. According to a survey, nearly 61% of respondents have been victims of phishing scams. Phishing is an online scam that targets consumers by sending them an email that appears to be from a reliable source of information, a bank, or a fintech company. For example, they might ask a customer to provide some information for verification and then use that information to access the customer’s existing accounts.
Technical issues:
Digital payment platforms are vulnerable to network and technical disruptions that could disrupt transactions. Such issues can last for hours, if not days, making it difficult for customers to rely on the services. Technical issues or network issues can result in disputed transactions. When a customer performs a transfer or a specific payment activity but the business owner does not receive the value. The process is disrupted, which leads to an argument.
Countries in development will be more affected because the spread of quality networks to every zone may be limited, resulting in serious technical challenges that affect customers.
Point-of-sale merchants are affected by bank network outages that disrupt card withdrawals at the POS terminal. If the transaction fails, the customer’s account may be debited.
Increased cost:
It takes a lot of money to use digital payments efficiently. The increased cost of machines, software, and other high-tech innovations can make installing and maintaining e-payment systems expensive. There is an investment in data protection and another aspect of the system to ensure that payment gateways operate smoothly.
These costs are frequently deducted from the customer’s account to ensure that every system functions properly.
Possible Solutions to the challenges:
By making sure that the digital tools we use can operate without any issues even on a poor network, we can lessen the low internet bandwidth that can be a huge challenge and cause technical issues. Also, the government can enhance the infrastructure required for a strong network.
Using payment gateways that encrypt card data and transform it into a series of random characters and mix it before it reaches the server helps decrease digital fraud such as identity theft, card theft, and other phishing tactics. As a result, server theft will decline.
Here are more solutions:
- Consumers should be informed about current trends in online payment fraud and how to avoid it
- Companies should install antiviral software to reduce the risk of hacking.
- Frequent updates should be made to network security systems.
- Customers should never divulge private information to others.
- Transactions and emails containing sensitive information should be encrypted.
Although there are currently major issues with digital payments, the world is evolving and innovations are being made to provide perfect solutions to all the problems.
