May 19, 2025
Digital payments have witnessed rapid global expansion, driven by the increasing adoption of smart devices. However, several myths persist, creating confusion and hesitation among users. Here’s a closer look at some of the most widespread misunderstandings.
Myth 1: Identity Theft Is Solely a Platform Issue Security risks such as identity theft and online fraud are not confined to payment platforms alone. They also depend on how users interact with apps and websites, manage device security, and handle account credentials over time
Myth 2: Passwords Alone Guarantee Security Reusing passwords across multiple websites and platforms significantly increases the risk of theft and data breaches. Employing unique, strong passwords and enabling multi-factor authentication can help mitigate such risks.
Myth 3: Contactless Payments Are Easily Intercepted While contactless payments offer convenience, they require the POS device and the user’s device to be within close proximity—typically just a few inches apart—to process a transaction. This makes unauthorized interception highly unlikely.
Myth 4: Digital Wallets Lack Security Measures Despite regulatory requirements, trustworthy digital wallets provide security comparable to traditional bank accounts. Many wallets, particularly in Asia, are co-branded with fintech firms and banks, ensuring robust security standards.
Myth 5: Cashless Payments Are Expensive Governments and payment providers actively promote cashless transactions, often making them more cost-effective than traditional cash-based services.
Myth 6: All QR Codes Are Unsafe QR codes are not inherently risky (changed from “not intrinsically unsafe” for improved clarity. but users should exercise caution when scanning unfamiliar ones. Avoid sharing personal information on suspicious websites and ensure QR codes originate from reliable sources.
Myth 7: Third-Party Withdrawal Requests Are Possible The belief that an external party can initiate withdrawals without user authorization is inaccurate. Banking apps and UPI systems ensure that only the account holder can authorize transactions.
Myth 8: UPI PIN Authorizes Payments by Default Some users mistakenly believe that entering a UPI PIN while checking their balance automatically approves payment requests. However, the PIN is required for balance inquiries but does not process withdrawals or payments unless explicitly authorized.
Myth 9: Fraudsters Can Withdraw Funds Without User Consent No funds can be withdrawn from a user’s account without their explicit authentication. Secure login credentials and multi-factor authentication further reduce fraudulent risks.
Myth 10: Digital Payments Are Complex and Inaccessible Contrary to misconceptions, digital payments are designed to be intuitive, fast, and user-friendly. These solutions cater to individuals across various age groups and technological backgrounds, ensuring accessibility for all users.
By dispelling these common myths, users can make informed decisions and embrace digital payment solutions with greater confidence.
