Financial Tech and Digital Wallets: Innovative Approach vs Security Concerns

March 20, 2017     By : Azma Farhana

We are progressively being occupied with more up-to-date and better installment systems. In 2017, we witnessed these new methodologies in the Consumer Electronics Show or CES. While all these money-related advanced and creative techniques for payment are probably going to develop further, there is an equivalent level of security concern. Since we are amidst the principal wave of FinTech appropriation over the budgetary organizations, there are excessively numerous holes in security and compliance. New application engineers and IT organizations harbor a comparative sentiment. Juned Ghanchi of IndianAppDevelopers organization drives the mobile application development organization in India. The organization stated, “Conveying money-related tech at the cost of security is the exact opposite thing we can consider. This is the reason the reception is still moderate crosswise over banks and budgetary foundations.” Before we assess these concerns, let’s discuss the rising FinTech, computerized payment procedures and the conceivable outcomes they offer.

New FinTech at CES 2017

During CES 2017, Mastercard offered some clever innovations on managing an account upon the associated condition and home IOT. It introduced an application utilizing where individuals can order their basic needs (groceries) from their Samsung fridge. The savvy fridge, which should arrive in the market in the not-so-distant future, will stay associated with the application. At the same time, it permits clients to make, oversee, and share their rundown of required basic supplies. All these things need to be arranged based on their own requirement details. Mastercard has found a way to make payments less complicated. They have proven it through a wide range of wearable gadgets including fitness bands and smartwatches by collaborating with Coin.

New integration of smart pay

In CES 2017, Samsung declared that its Gear 2 product will be outfitted with Samsung Pay, the digital wallet application of the organization. In the coming years, we can see more gadget producers integrate advanced wallet services. The expanding combination of smart pay services with new gadgets and interfaces will lead towards further digitization of retail and cash dealing. Rabin Dsouza, from SushMobile, said that “the development of digital wallet with headsets, smartwatches and other wearable will convey new turn to the scene of keen cash.” He also said this is a consummately coordinated choice with respect to Samsung to incorporate its brilliant pay arrangement with Gear 2.

Bitcoin, the beginning of digital currency

Bitcoin as a digital currency rapidly got to be distinctly well-known both as an investment alternative and method for payment. All you need is to pick a bitcoin wallet, and you will be prepared for bitcoin transactions. The greatest draw that can make this cryptocurrency a future wager for investors is the hype it picked up and the developmental system. A solitary bitcoin is now worth more than $1000 USD. Actually, we can expect more organizations latching on to this currency for making payments and transactions.

Then there is Litecoin

Litecoin is another cryptocurrency that rose with a solid recommendation for computerized cash clients and investors. Litecoin, dissimilar to bitcoin, offers a quicker, more propelled, innovation-guaranteeing installment and accompanies a powerful supply of coins. In addition, while mining bitcoin requires the use of energy/resources, Litecoin is more vitality-proficient.

What’s at stake?

It is obvious that any product is helpless against new security flaws. In that regard, no advanced cash or computerized pay software is the same. As cryptocurrencies and digital wallets have quite recently begun to end up distinctly incorporated with our financial transactions and money-related exercises, the smooth appropriation will be tested until and unless they get to be standard methods of payment and transaction. At present, most organizations are still uninformed about these money-related innovations that can emphatically get them more accuracy, adaptability and speed in transactions. A large portion of the monetary establishments still underplay digital pay and cryptocurrencies in their plan of things.

Mobile pay and biometric authentication

Mobile payment procedures including bank transfers and cards are more secure now with the assurance of biometric validation. The unique mark scanner or face identification programming on a few handsets and platforms permit the users to enlist his/her biometric data with the gadget and from that point, utilize them for any transaction when it needs confirmation. On account of biometric validation, security vulnerabilities with mobile payment could be limited as it were. In the future, we can expect the expansion of such computerized transactions with biometric confirmation constraining the security risks.

Blockchain and bitcoins

Blockchain offers an astounding way to boost the security plans for a wide range of transactions made with digital currencies. Essentially, it is an open record which stays open to different gatherings. The crucial motivation behind this is to record all the mysterious transactions without permitting some other to adjust and transform them. The best thing about it is that when a transaction is recorded in this ledger, it can’t be modified or erased. So, any transaction in bitcoin is recorded, permitting anybody to see the points of interest of the transfers. Boasting a far-reaching and overall record of all the exchanges, it enables straightforwardness and clearness. Any sort of physical record just cannot alter or eradicate the recorded information in the bitcoin. Blockchain offers a really progressive approach to managing the security vulnerabilities related to bitcoin.

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