Adoption of digital payments has reported a phenomenal rise in the country but frauds too have inflated simultaneously, said FIS Pace Findings 2019 released in Bengaluru.
The report also revealed that a large portion of consumers affected by the frauds had also recently shifted from cash or card to mobile phones for payments.
This underlines the urgent need for the banks to scale up their security systems and consumer awareness, as awareness in terms of security features around digital payments is still low, said the report.
While over 41 percent respondents said that their interactions with their banks are largely mobile phone based, more than 96 percent of the financial fraud victims had moved from card or cash for payments to mobile phones over the last one year.
Nearly 16 percent of the customers who participated in the survey, communicate with the banks via desktop or laptop, seven percentage points lower than the figure reported last year, as per the findings.
For mobile-based banking and net banking, 12 percent consumers visited a branch, 17 percent interacted through the ATMs and 15 percent choose phone banking, revealed the report released by Ramaswamy Venkatachalam, Managing Director, FIS India.
Use of mobile app as a primary payment mode is most prevalent among the youth in 18 to 26 years age. While 39 percent use it for paying utility bills, 45 percent for entertainment.
39 percent choose it for peer to peer payments and 39 percent for online shopping.
Further, the report highlighted that as compared to the United States, the United Kingdom, and Germany, the acceptance of mobile phones based payments is the highest in India.
In India, 28 percent use mobile phones for booking entertainment tickets and paying for utility bills, as compared to 3 percent in the United States and 4 percent in the United Kingdom.
