HOW SECURE CONTACTLESS PAYMENT

The demonetization drive in 2016 in India, can safely be called the landmark moment which redefined the fintech ecosystem as it was understood until then and put many fintech startups in India on the map. The economy overnight forced the public to switch to digital payments and online transactions. It was this impetus to the wave of digitization that led to the boom of the existing digital finance platforms and the founding of new ones. The increase of digital players in the financial space in the last few years has eased the struggle to get access to funds. Fintech has emerged as the most effective lending channel, transforming the traditional way of banking and the end-to-end customer journey. It has unlocked various opportunities for tapping the wide substantial database of customers enabling a strong digital foundation. 

The entry of new-age lending platforms has catered to the larger segment of people who are in need of funds. Digitization has helped to achieve financial independence by obtaining affordable access to finance. Fintech platforms allow easy and transparent access to individuals, in achieving financial needs to cater to their requirements, simply by sitting at the comfort of their homes or offices. With the infusion of technology in the financial sector, delivering products and services to users has completely turned the way financial lenders used to function a decade ago. Due to stiff competition in the market, gaining access to information is easy and transparent, instilling confidence in the users in making an informed and wise financial decision. Both ‘finance’ and ‘technology’ have been an integral part of the Indian economy for decades. While fintech startups such as Paytm, MobiKwik, Oxigen, PhonePe, PolicyBazaar among others were around before 2016, post-demonetization they gained great momentum and turned into overnight successes.

Even though the digitization of the financial industry is increasing, there are still corresponding risks that require attention. New institutional types are rapidly increasing in number and potentially expanding. They rely on other financial and non-financial firms for important aspects of their business. Partnerships may create gaps in oversight by the primary provider and other third parties. Data privacy and security may also be an issue. However, the Indian digital finance industry is growing at a rapid phase.

But we really need to look at the scenario from multiple angles, does the above sketch applies to 100 percent, i.e. 135 Cr Indians are using these sparkling services? It will be quite critical to accept, keeping in mind the rate of literacy and poverty percentage in India. Along with cybersecurity, in the concrete case of uninterrupted and efficient power supply, download speed, bandwidth availability, and server capacity, India lags much behind even the neighboring countries like Nepal, Bangladesh, and Sri Lanka. In terms of the Digital Networking Index based on a recent survey of 139 countries, India’s rank is 91 whereas, the same is still lower at 114 when it comes to the case of Basic Infrastructure Digital Transactions Index, as measured by international agencies. While the rich and the powerful can ensure their privacy through extra payments, common people are always vulnerable and at the receiving end.

Where Financial inclusion is a matter of priority that relates to connecting marginalized and the underprivileged in the society to the mainstream economy, by means of providing financial literacy and access to banking and financial services. A large number of people who are still out of the formal financial net. As per the World Bank, about half of India’s population is financially excluded, On the other hand, a survey estimates that only 30% of adults in India are financially literate. Though the number of mobile phones in India comes to around 100 crores, according to estimates, only 25 percent of the population has smartphones useful for digital transactions. Those who have no bank accounts and/or no cash in their accounts and have no access to the essential digital tools and/or not capable of using them properly are the first to be deprived of their right to life, remain alienated and excluded in a cashless society.

However, there is a tendency to summarily dismiss these ongoing Indian initiatives for a digital society, vis-a-viz financial digitalization but it is actually as an impractical daydream. However, fascism is a specific situation where many an agenda which were considered impossible and impractical in yesteryears become concrete realities today. It is high time on the part of all well-meaning people to have an analysis and understanding of the subject in the proper perspective and thereby enabling all democratic forces to approach this corporate agenda in its multi-dimensional manifestations from a people’s perspective.