Digital Payment Security Evolves, Experts Propose Innovative Solutions

In today's digital age, the security of online transactions has become a top priority for consumers and businesses alike. Traditional methods of verification, such as One Time Passwords (OTPs), are facing scrutiny as vulnerabilities come to light. However, innovative solutions are on the horizon, reshaping the way transactions are secured.

According to Amit Kumar, Chief Technology Officer at Easebuzz, "SMS based OTPs, while widely used, have limitations. The Reserve Bank of India (RBI) is proposing a shift towards a principle-based framework for authentication, signaling a move towards a more secure digital payment ecosystem."

Shikhar Aggarwali, Chairman of BLS E-Services, emphasised the need for alternative authentication methods, stating, "The RBI's recommendation for a Principle based Framework comes in response to the vulnerabilities associated with OTPs. Biometric authentication, hardware tokens, and in-app prompts are among the possibilities."

Animesh Jha, Vice President of Fraud & Risk Management at Wibmo, highlighted the role of innovation in enhancing security. "Biometric authentication, behavioral biometrics, and AI-powered continuous authentication offer robust solutions to safeguard against cyber threats," he said.

In conclusion, the landscape of digital payment verification is evolving rapidly, with a focus on security and user experience. From biometric authentication to AI-driven monitoring, these advancements aim to ensure the integrity of digital payments in an interconnected world.