Indian consumers are more concerned about digital payments fraud, ACI Worldwide reveals

According to the press release, Indian consumers are exercising greater caution when using digital payments compared to 2020. Moreover, survey respondents perceived net banking to be the most secure method of payment, while UPI and e-wallet transactions scored higher than card payments – both for online and offline usage – suggesting increased trust in digital payment methods. Besides, 71% of consumers said they are more concerned about scams and fraud because of COVID-19, rising from 47% compared to 2020.

When it comes to the potential fraud risks while transacting via UPI or e-wallets, almost half (49%) of consumers are most concerned about fake UPI payment links that ask for money transfers via text or email. This can be attributed to a spike in incidents over the past year where fraudsters have duped users with payment requests citing donations for the PM CARES Fund, contributions to NGOs and crediting income tax refunds, among other scams. 

Additionally, 30% are concerned about their personal data being leaked due to data breaches, which suggests that consumer attitudes mirror the RBI’s concerns with respect to storing card details; this can be circumvented through banks’ deployment of a standing instructions (SI) hub.

On a positive note, the efforts of Indian authorities to encourage digital payments have been lauded, with nearly 8 in 10 (78%) consumers agreeing the government should continue to promote them to maintain safety and social distancing measures during the pandemic. Usage continues to rise, with digital payments via e-wallets and UPI being used at least once per day by 37% of consumers, second only to cash (52%) and rising from 29% just six months ago. 

Furthermore, 77% of consumers believe merchants and retailers are now more open to digital payment methods and encourage their use, compared to pre-pandemic, indicating that COVID-19 has accelerated both consumer adoption and merchant acceptance. Additionally, concerns regarding limited merchant acceptance have dropped to 13% compared to 19% last year and 23% in a similar ACI survey from October 2019.