Recently, Bangladesh Bank (BB) has asked all commercial banks to be cautious about fake notes as forgers may attempt to release counterfeit notes ahead of the Eid festivals cashing in on increased demand.
The BB advised banks to check notes before putting those in ATMs. At the same time, all branches were asked to display the security features of bank notes in video during banking hours.
Considering the amount of risk involved digital payment is the safest mode of payment going forward. Electronic payments are undoubtedly safer than cash payments, it's flawed logic to believe cash or checks are more secure. In fact, checks and cash could put consumers at greater risk, as there is no way to account for physical currency if it is lost or stolen. On the other hand, data-based trails left by electronic payments make it easier to detect fraud or other unauthorized activity. In order to accept payments electronically, businesses must adhere to strict security compliance that ensures consumer information is kept safe and everything is processed securely.
Digital payment organisations have come up with multiple security measures. Visa Tokenization service (VTS) is one of the most effective security solution. It is a new layer of security digital payments without adding friction to the shopping experience. It does not require merchants to make major changes to their current payment acceptance systems. The biggest benefit to all involved is that payment card numbers are no longer used or saved where unauthorized access can occur. For customers, this means added security and convenience. For merchants this means being able to accept new payment methods the way their customers want. And with the shift of financial responsibility, Indian merchants need to be poised to protect both customers and themselves.
It strengthens and augments the security layer especially when customers' credentials pass from one form factor to another or when they use more than one device. Most of the devices are going to be connected devices in the world. The fundamental foundation for all these connected devices to have invisible convenient payments will be something like VTS. It is safer than the magnetic stripes.
Apart from security digital payments also provides convenience to their customers. Mobile payment apps, wearable tech, and eCommerce are all replacing cash worldwide.
The Internet of Things is poised to have a particularly notable impact on the development of mobile, wearable, and real-time payments. Payment methods that slow consumers down are likely to cause frustration and become obsolete as the world modernizes, especially as millennials become a more significant and financially powerful demographic.
The writer is Group Country Manager of India & South Asia at VISA.