What is it that banks are looking forward to in a Payment Authentication solution provider?
In the realm of modern banking, payment authentication solution providers hold a critical role in ensuring secure transactions amidst the burgeoning digital landscape. Banks are actively seeking providers that offer advanced technologies, robust security measures, regulatory compliance, and seamless integration capabilities. Understanding banks’ priorities in selecting these providers is essential for comprehending the dynamics driving innovation in payment authentication solutions.
Ravi Battula, Vice President of Merchant Acquiring Business, Wibmo, A PayU Company
Growth in digital payments is surely adding consumer convenience, boundaryless growth for businesses, and a thriving digital economy. Fundamental to this digital payment ecosystem is the ‘trust’ that each party entrusts to the other without worrying about any negative consequences. Trust is the bedrock of the digital economy, which is accomplished through robust authentication solutions. Customers are most likely to trust their banks over any other entity since banks are the institutions where customers park their money, so they have to provide the highest security and trust.
All digital payment options—credit cards, wallets, online banking, real-time payments—UPI and BNPL rely on ‘non-repudiation’, so banking authentication solutions should support MFA (multi-factor authentication) like biometrics and device-based authentication solutions beyond standard SMS/OTP-based authentication (which is prone to challenges of non-delivery, latency, etc.). Risk-based authentication techniques should be adopted to balance customer convenience, transaction risk, and transaction success for merchants.
Easy-to-adopt solutions like Wibmo Protect support the whole gamut of issuer authentication holistically across various channels and products.
Mr. Shikhar Aggarwal, Chairman of BLS E-Services
Banks are looking for strong customer authentication through Payment Authentication solution providers, given the increasing use of fast digital payments and the heightened need for enhanced security & fraud prevention.
The effectiveness and reliability of authentication systems is determined by their ability to withstand data breaches from cyberattacks or other means like man-in-the-middle or social engineering attacks. It is important for Bank customers to have frictionless authentication with limited scope for error while also enhancing customer experience.
Banks look for many different types of payment authentication, including the use of an Authentication Code, Data Authentication, Multifactor Authentication (MFA), Digital Identity, and Strong Password.
Multiple factors of authentication include Possession (Something you have, like a Mobile Phone or card), Inheritance (Something you are, like a Fingerprint, Iris, Voice, etc.), and Knowledge (Something you know, like a PIN or password). Banks also determine the level of authentication using Risk-Based Authentication, in which the transaction risk is assessed based on the amount, location, and type of transaction.
Conclusion:
In conclusion, banks are diligently seeking payment authentication solution providers that can offer a comprehensive suite of features to address the evolving demands of consumers and regulatory requirements. Collaboration between banks and these providers is essential for maintaining the integrity of financial transactions in an increasingly digital world. Thus, the quest for the ideal payment authentication solution provider remains a strategic imperative for banks navigating the complexities of modern banking.
