Businesses relying on unauthorized services for user authentication face severe risks related to security, compliance, and regulation. Unauthorized providers may store or misuse sensitive user data. Increased exposure to breaches and fraud will be the likely outcomes of this. Such incidents can also result in financial losses, erode user trust, and tarnish the organisation’s reputation in the market.
Using unauthorized services are also a violation of NPCI guidelines. If businesses rely on unauthorized services then it’ll trigger penalties, legal actions, and even the suspension of UPI access. Businesses may also encounter unverified or fraudulent transactions. To be in their best interests, businesses must prioritize compliance and partner only with authorized UPI service providers.
