Karunya Sampath was a leader in the tech space with over a decade of experience at a few reputed Wall Street firms in New York. Karunya worked extensively in various technical roles with product and platform teams at leading global companies. Besides, she has mentored scores of people at eminent corporate and educational institutions through life skills workshops.
In a conversation with the Women Entrepreneur Magazine team, Karunya Sampath, co-founder & and CEO at Payoda Technologies, shares her views and thoughts on diversity in the cashless world as well as trends and security measures in BFSI.
The financial world is in the midst of a thrilling transformation led by rapid technological advances and changing consumer preferences. One of the most captivating changes is the rise of cashless transactions, sparking the question: are we heading towards a truly cashless society? In this article, we'll explore the fascinating trends reshaping the way we handle financial transactions and delve into the importance of security measures in a cashless economy.
What is catalyzing the Digital Payment Wave?
Traditional payment methods are undergoing a digital makeover, and it's nothing short of a revolution. The options available to consumers are expanding at an astounding pace. From credit and debit cards to digital wallets and the convenience of contactless payments, it's all about making our lives easier, safer, and more efficient.
What is the role of the rise of Digital Wallets and Contactless Payments in the current time?
Digital wallets have become a prominent player in the cashless journey. Imagine linking your bank accounts, credit cards, and even crypto currencies to a single platform for seamless transactions. Providers like Apple Pay, Google Pay, and PayPal have won the hearts of consumers, making payments as simple as a tap on your smart phone.
Contactless payments are no longer the new jargon; it's the technology that is evolving as we are using it. Just a tap of your card or smart phone on a payment terminal, and your transaction is complete. Quick processing times and top-notch security features have pushed cash to the backseat.
What are the advantages of Cashless transactions?
The transition to cashless transactions offers a myriad of benefits. Say goodbye to the days of carrying wads of cash in your wallet; it's all about simplifying transactions in our fast-paced world. Digital payment methods are equipped with robust security features like encryption and biometric authentication, reducing the risk of theft and fraud. Moreover, cashless transactions are not just efficient; they leave a digital trail, allowing individuals to track their spending and manage their finances more effectively.
What are the challenges in paving a cashless society?
While the road to a cashless society is paved with potential, it's not without its challenges. Digital exclusion is a real concern, as not everyone has access to the technology required for digital payments. Security worries loom large as cyber threats and data breaches become increasingly common. The heavy reliance on technology poses a risk, as technological failures could grind transactions to a halt. The exchange of personal and financial information in digital transactions also raises privacy and surveillance concerns.
Mention about diversity in the Cashless World.
The pace of transition to a cashless society varies based on culture and geography. Factors like technology infrastructure, financial literacy, and regulatory frameworks influence the speed of adoption. Some governments eagerly embrace digital payments, while others approach with caution.
How to balance tomorrow's Cashless World?
Transitioning to a cashless world is an exhilarating journey filled with complexity. Striking the right balance between technological advancement and financial inclusivity is vital. A completely cashless society might not be the ultimate goal. Instead, a hybrid economy that accommodates various preferences and demands may be the way forward.
Security in a Cashless Economy: Safeguarding the Future
As cashless transactions become the norm, the need for robust security measures becomes paramount. With an increasing number of platforms in the banking ecosystem, cyber threats are evolving, presenting a formidable challenge.
PCI DSS Compliance: Ensuring that all financial service players are PCI DSS-compliant is fundamental. The higher the level of certification, the better the security.
Biometric Authentication: Implementing secure authentication methods, preferably biometric authentication, reduces the risk of stolen credentials.
Data Access Controls: Implement strict data access controls, ensuring that only authorized personnel have access to sensitive information. Limit access based on roles and responsibilities.
Secure Backup and Disaster Recovery: Establish secure backup and disaster recovery procedures. Regularly back up data and test recovery processes to ensure business continuity in case of security incidents.
Real-time Transaction Monitoring: Implement real-time transaction monitoring to detect and respond to suspicious or fraudulent activities. Unusual patterns or large transactions should trigger alerts for further investigation.
Embracing the Cashless Revolution
In conclusion, the future of cashless transactions in BFSI is indeed a promising one. It's a world marked by convenience, efficiency, and heightened security. However, as we embark on this digital journey, it's essential to remember the critical role of security and a balanced approach that accommodates diverse preferences and potential challenges.
While the path to a cashless society is clear, the details of this exciting journey will be shaped by technological advancements, societal changes, and cultural shifts. With robust security measures and adaptability, we can navigate this transition successfully and build a more inclusive financial future. So, get ready to embrace the cashless revolution, where convenience, efficiency, and security are the currency of the future.
