The Asian economy relies heavily on cash because many people are unable to access traditional banking. However, recent trends in the region have everyone betting on the growth of cashless payments. E-payments have experienced exponential growth in countries in Asia, with millions of people now using it. Amazon Pay, Alipay, WeChat Pay and WhatsApp payments have also given those without a bank account access to digital currency. According to a recent CNBC report, cashless transactions are pegged to hit 726 billion by 2020.
Smartphone apps have made it possible for most users to go cashless. More people are getting on board each year in countries like Mainland China, India and the Philippines, and Worldpay reports that cashless payments have risen by 11% in the past couple of years.
There are many cashless payment options to choose from: e-wallets, debit cards, credit cards, chat-based apps, banking apps, mobile wallets and mobile-connected cash accounts. There is no single major player, and the market is widely scattered.
Banks, merchants, payment service providers and telecom operators are at the helm of this industry. Although there have been no major security incidents to date, threats are always present. The safety, security and sustainability of data handling holds the key to avoiding financial penalties.
Avoiding a security breach and reputational damage
All organisations must ensure they have a robust security model built on high standards of safety and security. Any data breach could result in heavy losses, both financial and reputational. Furthermore, organisations that handle EU residents’ data will have to prepare for the upcoming EU General Data Protection Regulation (GDPR), which is said to be the most important change in data privacy regulation in the last 20 years. If your organisation handles EU residents’ data, now is the time to talk to us about becoming GDPR-compliant.
IT Governance is a leader in cyber security. We offer staff training programmes (both in-house and online) and can help organisations take control of their cyber security. Our team of experts on data protection and privacy can perform GDPR gap analyses, assist in GDPR data flow audits, and provide other GDPR transition services.
Organisations should also make sure their services meet the requirements of the Payment Card Industry Data Security Standard (PCI DSS).