 

India Pvt Ltd. and Cisco India.

Both the Gol and private corporations play a major role in encouraging the growth of the
industry. Setting up the PIDF is a significant policy implemented by the government to attract
investment in the sector. With enough capital, the payment security industry is set to become a
priority as data breaches and cybercrime have grown at an exorbitant rate. In recent times,
consumers have also been sensitive towards data privacy and the need for securing private
information online. On February 18, 2021, the RBI released Master Direction on Digital
Payment Security Controls, establishing additional framework for onetime password (“OTP”)-
based authentication to further strengthen the security of the transaction process.

 

Recognizing the growing need to protect the confidentiality of customer data, the RBI is
pushing for adoption of multi-factor authentication (“MFA”) as a security measure among
financial service providers. The RBI has issued guidelines to payment aggregators and payment
gateways, who will now have to get customers to validate their transactions, without the option
of using their static PIN.

Entering a password to make payments is now being replaced by touch- or iris-linked
authentication. MFA is expected to tighten security around transactions, thereby removing the
risk of stolen PINs and, eventually, preventing fraud.

Tokenization is emerging as the new norm. Its goal is to prevent digital duplication of cards.
Untraceable payment tokens are generated per card, per merchant. Even if hackers manage to
steal tokenized data, they cannot use it, as the actual payment information is stored securely by
the payment partner.

3DS 2.0 is emerging as a game-changer for e-commerce payments in India. 3DS 2.0 prompts
consumers to verify their identity after analyzing the merchant’s contextual data on high-risk
transactions, thereby offering additional fraud protection.

Some banks and digital payment players are already leveraging technology innovations such as
NEC and QR codes to enable contactless payments. Contactless payments made through tap-
and-pay, dynamically generated PINs and wearable devices have not only made payments
quick and easy, but have also added an additional layer of security.

Emerging
Trends

 

 

Some of the leading players in the India payment security market are CA Technologies,
Symantec Corporation, Trend Micro India Pvt. Ltd., Thales e-Security Inc, Cisco-India,
Competition | VASCO Data Security, Gemalto, Intel Corporation and Transaction Network Services.
Landscape e Trend Micro has an approximately 70% to 75% share of banking customers in India.
Trend Micro has six of the 10 largest banks In India as its clients, increasing its
market share in the endpoint and server security segment.

 

 

AGS Positioning

ITSL, a subsidiary of AGS Transact, is an omni-channel merchant digital payment solutions company that aims
to consistently simplify the process of transacting, merchant acquisition and VAS. Providing cutting-edge
technology and innovative payment solutions to a fast-growing merchant base across India, ITSL offers a host
of products and services including a payment processing platform for routing commercial and retail payments.
between buyers and sellers across the country via a unique distribution model.

As of March 31, 2021, AGS was one of the largest integrated omni-channel payment solutions providers in
India in terms of providing digital and cash based solutions to banks and corporate clients. As part of its digital
footprint, ITSL provides end-to-end merchant solutions for the merchant acquiring business through supply,
installation and maintenance of POS terminals to various banks in India. It also provides integrated solutions to
corporate clients for efficient transaction processing. ITSL specialises in omni-channel merchant digital
payment solutions and aims to consistently simplify the process of transacting, merchant acquisition and VAS.
Ina span of two years, ITSL became one of the largest deployers of POS terminals at petroleum outlets in India
with 28,986 POS terminals deployed across various OMCs as of March 31, 2021. ITSL pioneered IPS with
OMCs and has rolled out IPS at more than 16,000 petroleum outlets with 28,986 terminals in India. Overall,
22.3% of fuel retail outlets in India use POS services offered by us.

Government policies have been incentivising OMCs and their customers towards digital payments, such as the
mandated discount of 0.75% on digital payments, which is bound to drive a shift in the payment methods at fuel
stations and reduce cash requirements at petrol pumps. Based on the current low ratio of POS terminals.
deployed to the number of fuel outlets addressed, it is estimated that approximately 100,000 POS terminals is
the untapped addressable size of the OMC POS market for AGS Transact, at present. The total addressable
market size of POS terminals in the OMC ecosystem is set to increase further in the near future, with the rise in

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