March 13, 2018
A little more than a year ago, an industry report said online transaction growth in India could vault the country past the U.S. as the second-largest e-commerce market in the world by 2034. According to a much more recent examination, the pieces that could make that happen sooner are falling into place. Transactions 2025, a report by The Economic Times, said by 2020, India will have 1.2 billion mobile phone users (520 million of which will be smartphones) and 650 million Internet users. Along with government initiatives to incentivize converting from cash to digital transactions, the report said by 2025, digital transactions in India could total $1 trillion.
Like other places in the world, however, the report acknowledges the eventuality that fraud will increase as online transactions rise. Also like other places in the world, EMV implementation in India is reducing in-store counterfeit fraud, driving criminals to leverage their stolen payment cards and personal information online instead.
“The threat of card-not-present (CNP) fraud is very real and must not be ignored,” the report said. “The success in recent years of diminishing in-store fraud risks is masking the challenge now rising in the CNP space. A balance must be struck between driving security and reducing payment friction. With marked increases in digitally originated payments, criminals have also turned their sights from traditional channels to the digital world. The emergence of malware targeting mobile devices such as GMBot among others is proving to be difficult to combat without an investment in strong fraud detection technology and controls. However, organizations that get this equation wrong will certainly face the consequences of this decision through significant increases in non-lending losses, erosion in brand reputation, and more importantly, trust in their payment services.”