According to a recent Kaspersky study, more than three in five (67%) users of digital banking and e-wallet apps in Southeast Asia prefer one-time passwords over SMS for every transaction.
SMS one-time passwords for electronic payment transactions are the top priority for consumers in most Southeast Asian countries. — Photo courtesy of Kaspersky
The ‘Mapping a Secure Pathway for the Future of Digital Payments in Asia-Pacific’ study found that a majority of respondents also want two-factor authentication (57%) and biometric security features such as recognition facial and fingerprints (56%).
OTPs are the top priority for consumers in most Southeast Asian countries like Indonesia (67%), Malaysia (66%), Philippines (75%), Thailand (63%) and Vietnam (74%). although in Singapore, two-factor authentication is the most pressing concern (65%).
Digital payment customers are also welcoming the use of machine learning to combat social engineering attacks. Almost half (40%) said companies should start preventing fraud/scams automatically based on spending behavior and/or transfer history.
Well over a quarter also said tokenization – the process of protecting sensitive data by replacing it with an algorithm-generated number called a token – could also improve the security of mobile banking and electronic payment apps.
The study found that e-payment users in Southeast Asia are increasingly aware of the importance of protecting their financial data amid rapidly increasing use of digital payment.
And they are clear on the additional security features they hope to see banks and mobile wallet providers implement in the future.
Yeo Siang Tiong, Kaspersky General Manager for Southeast Asia, said, “The sheer size of SEA’s market in terms of digital payments offers a long avenue for expansion. In a competitive industry, payment companies need to be evaluated not only on their innovations, but also on their security posture. We can tell from our findings that customers are increasingly aware of the value of technology to protect their finances online.
“In general, these security features are useful preventative measures that can potentially improve cybersecurity standards in the digital payments space. However, these options should not be considered in isolation, but considered part of a holistic cybersecurity framework.
Yeo said that to develop a long-term growth strategy, digital payment companies need to consider some of their users’ wants and needs.
Although some of the preventive measures are not entirely new and have been around for some time, it is crucial to consider how security features can be integrated without compromising the user experience, he said.
“Our research showed how customers are increasingly holding digital payment providers accountable for the security of their online finances, and so we’re telling businesses to identify cybersecurity gaps at every stage of their payment process. payment, and to integrate the right IT measures in a calibrated way.
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