India’s digital revolution will likely lead to 1 billion UPI transactions in the next few years. Currently, India is emerging as a world leader in digital payments by accounting for 46% of all digital payments in the world. Leveraging digital payments is an unmissable strategy for businesses in India’s growing digital economy.
However, the rise in digital payments has also led to a rise in online fraud. In the past three years alone, online scams have caused a collective loss of Rs. 1.25 lakh crore. In response, the Reserve Bank of India (RBI) has established various committees focused on protecting individuals and businesses, and the financial sector is increasingly turning to cutting-edge technology to tackle these threats.
Technology plays a crucial role in safeguarding businesses from online fraud while enabling them to benefit from the country’s growing digital economy.
Akash Sinha, CEO & Co-Founder, Cashfree Payments said, “In today’s digital landscape, prioritizing safety and security against fraudulent transactions is crucial for businesses to avoid financial losses and protect their reputation. Leveraging technology-driven innovations that use AI and ML algorithms can significantly enhance defenses against fraud. These advanced solutions are transforming the security framework for online transactions in India, providing merchants with unmatched protection and peace of mind.”
Today, secure payment solutions are required to protect businesses from fraud-related losses and build trust with customers.
“Many businesses either overlook the importance of fraud and risk detection tools or use ones that can’t stop fraudulent transactions in real-time. Additionally, creating effective fraud solutions often requires special certifications. However, it’s crucial to recognize that when customers feel secure about their transactions, they’re more likely to make repeat purchases and recommend the business to others, which drives growth.” ,Akash said.
Payment solutions that are technology-driven have complete risk management capabilities. Data security measures like encryption and tokenization ensure that all customer data is protected, reducing the chances of data breaches. Furthermore, robust risk management systems can assist companies in meeting regulatory obligations, thereby reducing additional risks.
Sinha added, “At Cashfree Payments, we have built ‘RiskShield’ through extensive research to provide businesses with a comprehensive risk management solution to combat cybercrime. Designed to address issues such as high chargebacks and fraud, RiskShield is effective across various sectors including financial services, e-commerce, and travel. Utilizing advanced AI and ML algorithms, RiskShield helps businesses reduce fraudulent activities by up to 40%.”
In the modern business world, companies can only succeed if they begin to invest in sophisticated fraud detection systems, secure payment gateway technologies, and extensive customer verification procedures.
