Mobile Payments And Why Blockchain Is Changing The World!

Mobile payments today have become the most preferred method of transaction for an increasing number of customers. India leads with 56% of i...

Mobile payments today have become the most preferred method of transaction for an increasing number of customers. India leads with 56% of its consumers using their smartphones to pay for goods and services. However, the emergence of these mobile payments has increased the number of fraud and cybersecurity risks related to digital transactions. These are reasons why some consumers are reluctant to embrace the latest mobile payment technologies entirely.

Vulnerabilities

Whether it’s your wearable device, home automation or your mobile device, hackers will try and exploit security vulnerabilities. Assuming that the latest mobile payment technology has figured out all their security flaws is wrong. There might be some vulnerabilities that can be exploited by hackers. Its, therefore, advised that you keep personal information safe by following necessary security measures. These include having a secure password, using two-factor authentication, data encryption, shopping on safe sites only and changing your password frequently. Fraudulent transactions.

Hackers are the most persistent beings in this world. They adapt their techniques to breach digital payment technologies, and they don’t give up easily. However, if you are up to speed with the standard security concerns, you can stay safe from these cybercriminals. No mobile payment method is 100% secure, but blockchain is slowly changing that narrative.

If mobile payments were made as secure as possible, more people would adapt to using them. However, it is the logic of vulnerabilities and security that keeps most people from using them, and they prefer to use cash or do bank transactions.

What’s blockchain?

Blockchain is a distributed database system that records the number of transactions taking place in real time and also maintains the list. Blockchain records are time-stamped and stored with very high levels of data encryption making it tamper proof and indisputable.

Imagine having a cash note that carries with it a ledger of encrypted data. On it, the details of every prior transaction carried out through the same is stored. To make it better, every person who comes into contact with this note has the transaction details on the bill in its entire lifetime. By the time you receive the note, you will have the transaction history at hand, and you will know if the person holding the note currently is worth transacting with or not. This is the main quality and feature presented by blockchain.

Blockchain is the technology in every company’s mind with digital currency being on the rise. Blockchain technology has the ability to decrease the rampant security issues in mobile payments and online purchases. Blockchain is providing an additional layer of security and trust ensuring that both sides involved in a transaction come out safe, secure and most important paid. It’s the security and trust that is providing blockchain with the chance to grow at such a good pace in the last year. If mobile payments were to adopt the same, users would increase significantly, but now mobile payments are a bit limited.

Digital payment services and blockchain

Digital payment service providers have now seen the need of embracing the blockchain technology. They are developing and using blockchain technology in an effort to use it to secure contactless payments. Every individual in a blockchain enabled transaction through the service providers will have the record of the relevant transaction in the system.

By trusting the technology, blockchain offers users both individuals and entities to transfer money to untrusted parties. By making good use of the blockchain technology, these parties are confident that both the end of the agreements are upheld, and transfer values agreed on are attainable.

The inherent trust factor related with blockchain is most important when dealing with peer-to-peer payments. The internet is filled with stories of overly trusting individuals who send money to people who say they will provide goods or service but disappears when they receive the payment. With blockchain technology, the use of smart contracts, digital contracts are used to help protect the people using blockchain for their digital transactions. Once uploaded to blockchain, smart contracts can’t be changed, must be honored by all involved parties, and they are available for everyone to see. This gives the end users assurance that businesses handling the transactions can be trusted.

The rise of digital payment solutions and financial technology is helping the world go cashless. Cashless payments are now covered by a wide range of technologies from cryptocurrencies and blockchain which are on the rise as well as mobile apps and digital wallets. Among all these methods, blockchain is driving the primary disruption of financial services.

At the core, blockchain is an absolute record book. It keeps a record of all transactions made, and this makes it a fantastic tool for financial services. With all this happening swiftly, people are left to wonder if blockchain is the future of payment methods.

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