Digital payments adoption on the rise, so is fraud: FIS Pace Report

Adoption of digital banking services is going up but at the same time incidents of frauds have shot up as well. A large chunk of consumers affected by fraudulent activities had also recently moved from cash or card to mobile phones for payments said FIS Pace Findings 2019 released in Bengaluru today.

This shows that banks need higher security systems and consumer awareness about security features around digital payments is still low, said the report.

While more than 41% of the respondents said that their interactions with their banks are happening primarily through the mobile, more than 96% of the victims of the financial frauds had moved from card or cash for payments to mobile phones over the last one year.

Around 16% of customers of those surveyed interact with banks through their desktop or laptop, a fall of seven percentage points from around 23% surveyed last year, as per the findings. Besides mobile-based banking and net banking, 12% visited a branch, 17% interacted through the ATMs and 15% did it via phone banking, said the report released by Ramaswamy Venkatachalam, managing director, FIS India.

Use of the mobile app as a primary payment mode is also the most prevalent among the youth in the range of 18 to 26 years. 39% use it for paying utility bills, 45% for entertainment, 39% use it for peer to peer payments and 39% for online shopping.

Citing data, the report also highlighted that compared to the United States, the United Kingdom, and Germany, the adoption of mobile phones for payments is the highest in India. At 28%, booking entertainment tickets and paying for utility bills are the highest in India, compared to 3% in the US and 4% in the UK.

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