Observer Research Founda... Marktanteilsanalyse für November 2025

Digital financial services have benefits but pose privacy risks that harm consumers, merchants, markets, and nations alike. Some payments systems in India suffer from vulnerabilities because they were not prospectively designed on the basis of the ‘privacy by design’ principle. At the back-end, the centralised storage of data is risky. At the front-end, faulty capture devices enable data misuse. Across the middle mile, data is transmitted without strong encryption. Payment systems must be redesigned to prospectively protect privacy and use unbreakable encryption and open standards. A data privacy legislation and a strong market regulator are also necessary.