In this thought leadership from KPMG India, we examine the digital payments ecosystem from a lens of readiness of framework for adopting the technology, emergence of new industry (Fintech), security and preventive measures that need to be taken before taking a leap of faith in the digital world.
The Government of India has definitely taken number of steps for going cashless post demonetisation. It’s initiatives like ’Digital India’ aim to transform India into a digitally empowered society and expect to further accelerate awareness, availability and adoption of digital technologies. However, the benefits of digital payments also increases the risks. The principal concern over the rush to digital economy is the growing threats of cyber-attacks, data leakage etc. Lack of awareness among customers and evolving digital payment ecosystem are the key reasons which have amplified the chances of getting exposed to cybersecurity risks such as online fraud, information theft, and malware or virus attacks. Security should be the shared responsibility of government and organisations, as well as the end users. Organisations should regularly update their software and fraud detection systems while the users should be aware of the basic security features. The government should focus more on educating the customers as well as enforcing basic security standards for organisations. Also, cyber breach reporting should be mandatory.
The idea behind this thought leadership is to focus on the transformation and gather views from users and industry on digital payments. There is information from KPMG internal employees on acceptability, awareness, challenges of digital payments after demonization and insights from external audiences on what's the trigger on cyber security after demonetization.
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