While digital transactions have increased in the country post demonetization, a number of questions have been raised about the security aspects of the various digital payment services in India. Now, a new study conducted at IIM Bangalore has claimed that the Indian digital payment services are not as secure as they are often thought to be. The study was conducted by the Centre for Software and IT Management (CSITM) at IIM Bangalore. The study thoroughly analyzed digital payment services across four primary categories – digital wallets (PayTM, FreeCharge), direct link with user’s bank (BHIM), specific bank’s app for account holders (iMobile by ICICI Bank), and basic USSD service (dialing *99#).
The study found that digital payment services such as PayTM allow automatic interaction with third party vendors, which is not safe. Confidentially was another aspect that was not found to be insecure among most platforms except USSD. Another security concern was the unavailability of automatic log off feature in apps like PayTM and FreeCharge. In comparison, BHIM has automatic log off feature, which makes it more secure.