The COVID-19 pandemic has changed a number of people's habits. One of them is in transactions, many people are starting to adopt digital money.
This was revealed in a Kaspersky report entitled "Mapping a secure path for the future of digital payments in APAC". The researchers studied local users' interactions with online payments available in Asia Pacific and observed their attitudes towards these practicalities.
One of its key findings shows that a large proportion (90%) of Asian respondents have used a mobile payment app at least once in the last 12 months, which confirms the fintech boom in the region. Almost 2 in 10 (15%) of them just started using this platform after the pandemic.
The Philippines recorded the highest percentage of new electronic money (e-cash) adopters at 37%, followed by India (23%), Australia (15%), Vietnam (14%), Indonesia (13%), and Thailand (13%). While the lowest were China (5%), South Korea (9%), and Malaysia (9%).
The low percentage of China is quite understandable. Because China has become a leader in mobile payments in Asia Pacific. Even before the pandemic era, its top local platforms, Alipay and WeChat Pay, had caused significant mass adoption and set an example for other Asian countries.
"Data from our latest research shows that cash is still king, at least for now, in Asia Pacific with 70% of respondents still using physical records for their daily transactions. However, mobile payments and mobile banking applications are not far behind with 58 % and 52% of users use this platform at least once a week to more than once a day for various purposes related to their finances," said Chris Connell, Managing Director for Asia Pacific at Kaspersky.
From these statistics, we can conclude that the pandemic has triggered more people to jump into the digital economy, which could completely reduce the use of cash in the region in the next three to five years."
Security and convenience are driving more users in Asia Pacific to embrace financial technology. More than half of survey respondents noted that they started using digital payment methods during the pandemic because it was more secure and convenient than making face-to-face transactions.
Respondents also mentioned that the digital platform allows them to make payments while adhering to social distancing rules (45%) and that this is the only way they can make monetary transactions during times of social lockdown (36%).
For 29% of users, digital gateways are now more secure compared to the era before COVID-19 and the same percentage also appreciate all forms of incentives and rewards offered by digital payment providers.
Despite having a small percentage, friends and relatives (23%) still influence new users as well as local governments (18%) in promoting the use of digital payment methods.
When asked about their preparation before using mobile banking and payment applications, users first acknowledged their concerns - fear of losing money online (48%) and fear of storing financial data online (41%). Nearly 4 out of 10 also expressed that they do not trust the security of this platform.
More than a quarter also found the technology too inconvenient and required multiple passwords or questions (26%), while 25% said their personal devices were not secure enough.
"To drive a secure digital economy forward, it's important for us to know where users are struggling and identify gaps that we need to address urgently. It's a welcome finding that the public is aware of the risks that come with online transactions and as such, app developers and providers Mobile payments must now look at cybersecurity vulnerabilities at every stage of the payment process, and implement security features, or even secure design approaches to gain the full trust of future and existing digital payments users," added Connell.
To help users in Asia Pacific securely embrace digital payment technologies, Kaspersky experts suggest a number of things.
Tips for using digital payments safely:
Beware of fake communications, and be careful when handing over sensitive information. Do not directly share personal or confidential information online, especially when it comes to requests for financial information and payment details.
Use your own computer and internet connection when making online payments. Like how you will only make purchases from trusted stores when shopping physically.
Apply the same caution when making online payments. You never know if a public computer has spyware that records all your typing on a keyboard, or when a public internet connection has been intercepted by cybercriminals waiting to launch an attack.
Do not share your password, PIN number, or one-time password (OTP) with family or friends. While it may seem convenient and practical, it provides an avenue for cybercriminals to trick users into disclosing personal information to collect bank credentials. Keep it to yourself and always protect personal information.
Adopting a holistic solution of security products and practical measures can minimize the risk of becoming a victim of cyber threats and keep financial information secure.
Take advantage of reliable security solutions for comprehensive protection from various threats, such as Kaspersky Internet Security, Kaspersky Fraud Prevention and the use of Kaspersky Safe Money to help verify the authenticity of the websites of banks, payment systems and online shops you visit, and establish secure connections.