How UPI is Driving India’s Shift from Cash to Digital Payments

The economy of India was dominated by the use of cash half a decade back. There were only a few online payment methods such as National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS). However, the tables turned with the birth of the vision for cashless India. The Reserve Bank of India wanted to make the existing payments system strong and streamline the settlement system with simpler and safer digital payment methods. A huge revolution occurred in the economy of India with the development of the UPI payments system- a real time payments platform.

An overview of the unified payments system

The UPI payment system was developed & is regulated by the National Payments Corporation of India (NPCI). The ulterior motive if this collaboration was cashless economy driven digital payments.

The UPI payment system synced perfectly with the increased use of smartphones. It is a mobile-based payments system allowing instant transfer or collection of funds between two accounts or two banks. Once you have registered your account with UPI, you need not go through the hassle of typing account number and other bank details every time you make some transaction. You can download any of the UPI apps from the play store and log in using your respective mobile number registered with the bank. You have to set a UPI pin, which is to be during every transaction.

They are used for both Peer-to-Peer (P2P) and Peer-to-Merchant (P2M) transactions. It can also be used for various value-added non-financial transactions like checking real-time balance and history of transactions.

What is the reason for traction among the masses?

The interoperability of the payments system and its ease of use interface make it popular and stand out apart from other payment solutions. The portable nature of the bank adds to the popularity of the real-time payment solution. This means that you can link your bank account to a UPI app provided by another bank or any app such as Google Pay. Also if a user has multiple bank accounts, they can link to a single UPI app. This drives easy payment from one account to another without entering different account numbers each time. When convenience is the key, its popularity cannot be questioned.

The simplicity of transactions is achieved by the use of a virtual payment address. The VPA searches and identifies themselves with another consumer without providing the bank account details. The VPA also helps in lowering the risks of fraud.

A wide array of features has paved the way for such huge popularity of the UPI solution. Apart from being a robust payments system for personal transactions, UPI offers great benefits for businesses. Merchants can use their mobile as a tool for the acceptance of payments. This brings down the cost of transactions compared to the traditional system like Point of Sale (POS) and QR code-based payments. The upgraded version of UPI offered benefits to the merchants such as pre-authorize a transaction, overdraft accounts on UPI, and stronger verification.

Unified Payment Interface Solution

We at finacus provide the best Unified Payment Interface (UPI) platform with an API interface and mobile interface for consumers. It helps in addressing today’s digital transaction challenges with a simple interface.

Bottom line

With about three forth merchants using UPI solutions, it is time for you to adopt a robust UPI platform. Know more about our solution FinUPI. Ask for a Demo Now.

Advantages of Aadhaar Based Payment in Daily Life

The Aadhaar based payment system has given yet another purpose to Aadhar card beyond its identity as an identity card. The Aadhar enabled payment system has made the transaction easier. The government of India has made use of the Aadhaar database to give shape to the digital future. The Aadhar enabled payment system has a streamlined authentication process. This is a great way for handling banking services for people who don’t have a smartphone. In this article let us take a look at what are the benefits of Aadhar enabled payments system in daily life.

What is an Aadhar enabled payment system?

The AePS is a system formulated by the national payments corporation of India for people to make various financial transactions through Micro-ATMs. This process is done using the unique 12-digit Aadhaar number and biometric authentication.

To carry out the transactions people need not provide their bank account number and other bank details. You can carry out 6 different types of transactions at the point of sales.

  • You can deposit cash 
  • Cash withdrawal
  • Make balance inquiry
  • Perform Intra-bank or Interbank fund transfer
  • You can purchase at fair shops
  • You can also get a mini-statement.

Aadhaar Bridge Payment System (ABPS)

The Aadhar bridges system is an Aadhar based payment system used by the government to offer special facilities and subsidies to the beneficiary.

Now let us take a look at the benefits of using AePS banking in daily life one by one.

Ease of use

A major advantage of Aadhar enabled payments system is that it is easy to use. You don’t require  knowledge of operating a smartphone or complex applications to make use of this system. The ease of use makes it the perfect mode of transaction for people from all sections of society. Uneducated people can easily avail themselves, various transactions offered by the bank. To make a transaction using your Aadhar card, follow the following steps:

  • Go to the nearest AePS service providing company and check whether they have registered with your bank.
  • Provide your 12-digit Aadhaar number and the name of your bank
  • Now, choose the type of transaction you need to perform such as cash withdrawal, deposit, and fund transfer, or balance inquiry.
  • Followed by the selection of transactions, authenticate the process via biometric scans such as fingerprint scan or iris scan.
  • Once you complete authentication, the transaction gets completed in a jiffy and you can collect the receipt

Safe authentication

When you perform transactions daily, it is inevitable that the process is highly safe and secure. AePS fulfills the requirement truly. As the transfer is authenticated only through a biometric scan, only you can do any transaction.  

Advantages for retailers

The retailers and shop owners can also make use of the AEPS service to accept payments from the customers.

  • Hassle-free and secured payment by the customers
  • Cashless payment
  • Easy and facile

FinAEPS

The FinAEPS is an online immediate Aadhar based solution that connects with the AePS interface of NPCI and supports Aadhar based transactions. It is hosted as a switch of the bank’s financial transaction and connected to the core banking system. The FinAEPS can be used in a multitude of ways

  • Regular ATMs
  • Business Correspondent Model
  • Agent Banking through Micro-ATMs or Tablets

Bottom line

Aadhar has become mandatory for almost every banking-related process and it is inevitable that you adapt the best AePS solution to perform transactions. As one of the best providers of AEPS solutions, we will help you with a demo and required information.

How Two-Factor Authentication Keeps Your Accounts Safe

The heart bleeds bug of 2014 exposed millions of internet logins to scammers and the security systems didn’t do anything to stop them from entering. What can an average internet user do? You will get tips like changing your password regularly. That is just something that can’t be secured. What actually your account wants is a second way to verify yourself. This is where two-factor authentication has come to play. 2FA adds an extra layer of security to your accounts. In this post let us take a look at what two-factor authentication solutions are and how it works.

Two-Factor Authentication

What is two-factor authentication?

A two-Factor authentication is a form of a security system for our accounts that requires two levels of identification to access it. Also known as two-step verification, this combines your password and username with your phone and your physical security key such as your fingerprint. When you are accessing something online, many sites will ask you to enter a username or password to log in. This is known as one-step verification. However, enabling two-step verification takes you to two stages of verification. The first stage is your username and password. In the second stage, the site will send you a text message to your mobile which will contain a six-digit code or a four-digit code. This code has to be entered to enter the site. This code is known as authenticator or a passcode or verification code

How two-factor authentication works

When you enter an online account with a username and password it is single-step authentication. Here all you need is your password to verify that you are who you are. With 2FA you have to provide a password and a passcode. Most of the apps and services provide 2FA especially for the ones that store sensitive data such as emails, financial information, files, social media, contact details, and so on. The high-risk accounts such as Netflix doesn’t have this form of multifactor authentication.

The need for 2fA

Gone are the days when you blindly trusted your password to protect your accounts. There are various forms of breaches with just a password as anyone can memorize the password. It can also be susceptible to credential stuffing and brute force attacks by hackers. Enabling two-factor authentication services in the right place protects your customer’s account from automated login attacks.

The benefits of 2FA

  • Protects you from a phishing email
  • Enhanced security
  • Boost productivity with mobility
  • Protect against fraud
  • Lower help desk and security management costs

Multi Factor Authentication

Our 2fa service providers have developed the best solution to protect people from online digital threats. The two-factor authentication system is based on two factors

  • Something only the user knows (i.e. the knowledge factor)
  • Something only the user has (i.e. the possession factor)

This system has endless features to make protection against attacks top-notch

  • Ease of integration and installation
  • Strong Authentication to prevent Identity Theft and other frauds
  • Regulatory Compliance
  • Integration PlugIns
  • Multiple Form Factors
  • Encryption and Privacy
  • Simple Administration
  • Possible Integration with Risk-Based Transaction Algorithm
  • Competitive Costs

Applications of the two-factor authentication system

  • Mobile Banking
  • Internet Banking
  • E-commerce
  • POS / Retail Transactions
  • ATM
  • Bank’s software systems
  • VPN
  • Mail Clients

Bottom line

If you don’t have a two-factor authentication system then enable it now to ensure sound security for your information online. We offer our top-notch two-factor authentication system to the customers who need a security system. You can request a demo to learn more about the product.

How Mobile Apps Are Transforming The Banking Sector?

The number of visits to the bank in a month has reduced drastically and all the credit goes to digital banking. With the tremendous advancement of technology, banking has also transformed and it has become a hassle-free process. The more modern take on traditional banking is mobile banking apps. They are built in accordance with the latest trends and make banking a hassle-free process. The mobile banks have evolved banking from going paperless to making ultrafast transactions. Let us walk through some of the tumultuous breakthroughs triggered by mobile banking services.

mobile banking services

Cashless payment

According to the report of the world payments, the non-cash transaction of the globe grew by 10.1 percent to reach 482.6 billion and it is expected to grow to a CAGR of 12.7% throughout 2020. With the rise of cashless payment, mobile banking apps are skilled adaptors of the game. Non-banking applications are also providing a cashless payments facility. The growth in Peer-to-Peer payments is also seeing tremendous growth in which the customers can send or receive money directly via the application.

 Secured accounts

The advancement in technology has brought its threat such as users’ accounts hacking and fraud. These problems can be put to an end with dedicated mobile apps. The mobile banking solutions are enabled with advanced security features such as fingerprint scanning and face recognition. In addition to the regular sign-up options, voice security is introduced in the mix. Frauds and fishy activities can be detected easily with the aid of artificial intelligence. AI helps in deducing the patterns regarding any suspicious activity in real-time and it also forecasts how the behavior will affect the future. Biometric authentication has replaced multi-factor authentication as it is thought to be time-consuming.

Chatbot assistance and voice transaction

The QR code scanning has made in-store and online transactions easy as the users have to just scan the code on their banking app. In addition to this, the use of voice assistance is increasing tremendously as it is considered to be a simple way of connecting various devices and smartphones. Soon fund transfer will also take place with voice assistance. It is predicted by mobile banking app providers that voice payments are going to have a great place in the payment sector. A chatbot is another technology that has become a part of mobile apps. The banks are exploiting this AI-based assistant to help the customers. The Chatbots will answer the questions of the customers without any waiting.

Financial planning 

One of the biggest challenges that are prevailing among many is budget management. Though there are various apps to do that for you, your mobile banking app is the safest option to do that. The app will help you in making the right financial decision and provide witty tips for money management, increase savings, improve investments, and much more.

Mobile banking solution

Finacus, one of the leading mobile banking app solutions providers helps the bank to leverage their consumer behavior and build innovative solutions with their complete mobile banking solution. Our mobile payment transaction switch FinMOBICONNECT, along with the mobile banking solution offers an interoperable infrastructure for banks. The benefits of our Mobile Banking System are

  • Customer engagement
  • Easy, Convenient, Secure
  • Anywhere, Anytime access

Bottom line

This is the perfect time to embrace a robust mobile banking system to manage all your transactions efficiently and meticulously. We as one of the best mobile banking system providers in India will offer you the required information needed when requested for a demo.

5 Key Benefits of Online Banking for SMBs

Digital banking has not been a boon only for individuals. Small businesses also experience a host of benefits with online banking. The “Digital India” campaign that was launched by the government in 2015 has played a crucial role in making digital banking popular across the country. The popularity of online banking has proven to be beneficial for small companies as they can save a lot of resources and time. Internet banking services have made keeping track of expenses convenient and efficient. Gone are the days when a person in the company had to go to the bank in-person to deposit a check or withdraw cash as everything can be done online.

online banking for SMBs

Seamless syncing with accounting

One of the biggest pains for small business owners is accounting. Online banking and accounting has made management of accounts easier than ever as all the transactions are added to your accounting without the need for spending hours manually adding the transactions. This saves a lot of time and makes sure that the financial reports are up to date.

Anywhere anytime access

One of the biggest benefits of the online banking system is its access round the clock. The 24×7 access throughout the year offers business owners the to manage transactions from the comfort of their home and office. Even if you have doubts; you can log in and check the transactions. You need not visit the bank every time you have to send money to someone or receive money. You can do various business activities such as to send money, view balance and receive money anywhere and anytime.

Fraud alerts

Digital banking allows you to see the transactions in real-time and if something seems fishy; your bank will give you an alert. They will verify the location and if something is off, a red flag will be raised. All the banking transactions will be done in a single window, so you will be fully aware of all the transactions taking place.

Increased security

Online banking is more secure compared to cash transactions. Since that transaction is done digitally, the risk of theft and burglary is ruled out. This overcomes one of the common problems faced by the businesses handling cash. With online banking, the risk of human error is also reduced drastically. You can customize employee access with online banking. Since not all the employees need to access all the accounts, certain features enable sharing content with the selected employee.

Mobile banking

Online banking not only offers a banking portal on the web but you can do transactions through a mobile phone too. Most of the banks have their exclusive mobile apps that can be used to perform any transaction on the go. Even if you can’t access a laptop or computer, you can still manage your transactions through your phone.

Our robust solutions

If you are struggling with business financial management you can try our FinCORE solution which is a Core banking solution. It helps in streamlining the business’s processes with Information Management and Risk Management as the key. It offers a plethora of features centered around the modern architecture of banking.

 Bottom line

It is never late to embrace a robust online banking system to manage all your transactions efficiently and meticulously. We are one of the best online banking software providers in India. We will provide you with the information needed and a demo.

Bharat Bill Payment – One Stop Solutions for All Bill Payments

The wallet revolution bought a revolution for the users who pay their DTH, mobile, and internet bills with a mobile wallet. The reserve bank of India in an attempt to do the same for utility bills launched a new platform. According to the reserve bank of India Rs, 6223 billion is generated in bill payment from about 20 major cities with 70 percent of the same was in cash. To make this payment hassle-free and channelized, the national payments corporation of India launched the Bharat bill payment system. Let us take a look at what it is and how it has transformed the utility payments in India.

Bharat Bill Payment System

What is Bharat bill payment?

The Bharat bill payment system is a conceptualized system by the reserve bank of India and driven by the national payments corporation of India. It is a one-stop platform that allows payment for all bills by providing interoperable and accessible bill payment services. It has become popular with the anytime anywhere payment of a bill for the customers all over India with certainty, reliability, and safe transactions.

 How is it different from mobile wallets?

The popular providers such as PayTm offer utility bill payment services, the services they provide is restricted to the tier 1 and tier 2 cities. The BBPS service on the other hand is a national phenomenon. Even a person in a rural area can pay their bills through this all-in-one ecosystem. It also provides payment through ATMs, MPOS machines, business correspondents, and agents which allows full integration of this service even in the remotest area.

What are the charges?

The NPCI doesn’t specify any charges for the services provided by BBPS whilst the banks may charge some fee in order to make it viable. The wallets are luring the customers by providing various discounts but the whole platform is pivoted to the banks starting a convenience charge.

How to make payment using BBPS

Making a bill payment is an easy job if you do the following steps perfectly

  • Step 1: Connect your number to any internet banking or app of your respective bank or visit a bank or retail shop.
  • Step 2: in the respective app click on the BBPS tab
  • Step 3: you have to now choose the biller and enter the details of the bill
  • Step 4: You have to initiate the payment and get the confirmation for payment.

Key features of BBPS

The BBPS online payment service offers various features to improve efficiency and make bill payments a cakewalk for people. Let us take a look at some of the noteworthy features.

Interoperable: The platform connects the banks and the non-bank system in the business of bill aggregation. It also brings together billers, payment service providers, and retail bill outlets.

Accessible: It facilitates bill payment through any channel no matter whether it is digital and physical.

Complaint management: It has a standardized system to handle the grievances of the customer for both ON-US and OFF-US transactions

Clearing and settlement: It offers multiple clearing and guaranteed settlements between various parties.

Benefits of BBPS

  • Convenient and reliable service with a high level of Trust and Security
  • Transparent pricing with instant payment confirmation
  • Unified Grievance Handling
  • Rules are standard

Bottom line

Gone are the days where you can pay only one bill at a time with the Bharat bill pay online system. You can get a lot of benefits from this method. If you want to have trouble-free bill payment, you can go for the BBPS ecosystem.

AML Software- Protect Your Business from Financial Crime

Money laundering has been one of the most serious crimes that have a humongous impact on the business. Money laundering is not something reserved just for the big screen. According to a survey, the annual global money laundering transactions account for about $1 trillion to $2 trillion which is 2% to 5% of global GDP. The common target for money laundering is small businesses. Increasing money laundering can be kept at bay with the help of the best Anti-money laundering software. The anti-money laundering software offers the users a shield of security to keep the money safe.

anti money laundering solution

What is money laundering?

Money laundering is the generation of large amounts of money through various criminal activities from legitimate sources. In simple words, money laundering is the process of taking dirty money and cleaning it. Money laundering is done by three major steps which are placement, layering, and integration.

  • Placement is the step where the dirty money is put into legitimate financial systems such as a bank.
  • Layering is the step in which the source of the money is concealed through various transactions and bookkeeping tricks.
  • Integration is the withdrawal of laundered money and normal usage.

Money laundering is a risky job that earns up to $500,000 of fine or double the property or imprisonment for about 20years.

What is anti-money laundering?

Anti-money laundering is a set of laws, regulations, and procedures that is designed to prevent people and deter people from hiding illegal money as a legitimate income. It is in the hands of the financial institution to monitor the deposits of the customers and ensure that it is not a part of any laundering scheme. Unfortunately, the laws of AML are slow to catch up to the cybercrimes as most of the laws are designed to detect dirty money as it enters the traditional banking systems. Establishing a robust AML transaction monitoring software helps in identifying dirty money way earlier and not just through the traditional system. Let us see how AML software helps to identify and avoid money laundering.

  • Enhanced due diligence: The AI-driven software automates the enhanced due diligence process. The steps are taken by providing a clear cut idea about the people with whom you are dealing, understanding, and monitoring all their activities in various transactions, and accessing the risk of money laundering.
  • Reviews odd transaction patterns: In the case of money laundering, the launderers use several accounts to perform just small transactions which will easily surpass without getting caught. This pattern might miss the human eye but automated AML software solutions can identify the smaller transactions and unveil any pattern that is an effect of illegal activity.
  • Identification of the politically exposed persons (PEPs): Compliance for PEPs is mandatory for financial firms. This is essential to identify the risk that is associated with your customers. If a person is holding a public office or a function then he is a politically exposed person. If you want to do business with such an entity, you have to perform due diligence and monitor the ongoing transactional activities.

Money laundering is extremely serious for small businesses. It will expose you to hefty fines and imprisonment.

Bottom line

The financial sectors should consult the best anti-money laundering solution providers and install robust AML software in place to make sure that the transactions made don’t involve dirty money.

AEPS – A Simple, Secure, and User friendly Mode of Payment Solution

The Aadhar enabled payments system or the AEPS is developed by the umbrella of the digital transaction- the National payments corporation of India. It is a system of payment that allows the customer to perform various transactions with Aadhar as the base for verification. AEPS is driven by the unique identification number or the Aadhar number for an effort transaction. The AEPS system works cordially with the banks and is aimed at empowering all sections of the society. The Aadhar enabled payments system makes easy transactions to all people of the society. Let us see how AEPS has become one of the most sought-after and user-friendly platforms for digital transactions.

Aadhar enabled payments system

About AEPS

The Aadhaar enabled payment system allows the customers to make payments and transactions using their Aadhaar number and Aadhaar verification at point of sale or micro ATM. It is an initiative taken by the national payment corporation of India to instill cashless transactions. AEPS makes financial transactions a cakewalk.

How can you use AEPS?

Step 1: Visit a micro ATM that is nearby or a banking correspondent

Step 2: Provide your Aadhar number and the bank account number that is linked to Aadhar.

Step 3: Among the various options provided, choose the type of transaction that you want to perform

Step 4: Confirm the payment by providing verification through a fingerprint scan and iris scan.

Step 5: Collect your receipt for the transaction that you have made.

Services provided by AEPS

  • Cash Deposit
  • Payment Transactions (C2B, C2G Transactions)
  • Balance Enquiry
  • Cash Withdrawal
  • Aadhaar to Aadhaar funds transfer
  • Obtain mini statement

What do you need for AEPS?

The Aadhar enabled payment system doesn’t require any documents but it is mandated that you have to link your Aadhar to the bank account. The following are the main requirements that are required for a successful AEPS transaction.

  • Aadhaar Number
  • Bio-metrics –Fingerprint
  • Name or Bank IIN or Issuer Identification Number
  • Micro ATM
  • Assisted mode

Charges for AEPS

The customers need not pay any fee to avail of this service. The merchant or the bank correspondent might be charged based on the decision of the bank. The cost of the transaction will be divided into various sections:

  • UIDAI charge a very less fee
  • NPCI charge 15 paise to 25 paise for settlement of the transaction
  • Banks may charge till 1% of the particular transaction with the minimum charges being INR 5 and the maximum is INR 15

Benefits of AEPS

The main aim of AEPS banking is to lay a strong foundation across the country for cashless transactions. The AEPS offers various banking benefits to people from all sections of society.

  • Very easy to use and handle
  • The method of payment is safe and protected
  • It offers interoperability across various banks
  • It boosts financial inclusion and helps people who belong to the underprivileged part of the society
  • Using AEPS, the account holders in a bank can access their bank accounts just with the Aadhar authentication.
  • With AEPS the only prerequisite that is needed to initiate a transaction is the Aadhar number and biometric information of the respective candidate.
  • This system eases the payment of various government schemes such as the Social Security Pension, NREGA Handicapped Old Age Pension, etc.

Bottom line

For seamless transactions, you can visit the best AEPS service provider in your area. The Aadhar enabled payment system will make all your transactions a jiffy process.

How Can Digital Transactions Grow With UPI System

India has seen a huge transformation in the banking sector and economy over the past decade with the implementation of Jan Dhan Yojana scheme. The country is on its way to building a strong and prosperous economy with various banking solutions that bring people of all sectors under one umbrella. With the onset of digital payment software usage in India many came up with robust platforms. One such platform that made digital transactions in India more refined is the Unified payment’s interface. UPI was introduced by the National Payments Corporation of India in the year 2016. Over the past 4 years, digital transactions in India have seen new heights with the UPI payment system as the platform.

What is UPI?

The UPI is a simple and easy-to-use platform that is designed to transfer money between two parties. The UPI payments system allows interoperability and real-time transfer of funds with the help of a mobile number and a linked bank account. You can instantly transfer funds between two bank accounts with the account number of the beneficiary. The added benefit of the app is that you can link various bank accounts to a single banking app. Noticing the spike in popularity of the UPI system; the NPCI launched UPI 2.0 in august 2018. The 2.0 version is an enhanced version with features for sophisticated transfer of funds. The latest feature of UPI 2.0 is a reflection of how digital transactions have improved and increased over the past four years.

One-time mandate

In the latest version of the UPI system, the users can pre-schedule a transaction and pay later. The mandates of UPI 2.0 are designed to sport a one-time block functionality in whichthe transaction is committed in present and processed later. This has been a huge convenience for the users as the instant mandate generation leads to an automatic reduction of payments on authorized dates. This has provided individuals relief from the hassle of remembering endless bills generated at the start of every month.

Verification of invoice

The latest version of UPI payments has focused on making transactions easy for merchants as the days when merchants waited in a long queue for transfer of funds in the bank has long gone. Merchants can dispatch online invoices to the customers who can view the amount of orders and other relevant details of payments. Customers can also check the authenticity of the merchants by scanning their QR codes thus preventing the rise of fraudulent activities.

Use over-draft account

The merchants can withdraw money from their account even if it is cash-deficit.

UPI is the game-changer

In India, UPI has been the game-changer in the payment space of India and over the years it has become one of the fastest payment modes that have brought financial inclusion to the masses. Let us take a look at some facts that owe towards growing digital transactions in India with UPI.

  • Within January and December 2018, UPI saw 7x growth
  • The adoption of UPI grew in tier 2 and tier 3 cities apart from tier 1 cities.
  • In February 2020, recorded around 1.32 transactions that is worth INR 2, 21,995 crore
  • This is a growth of 1.4 percent from 1.30 billion in January of this year.
  • According to a report by world line UPI is the most preferred mode of online transaction in 2019
  • All the records were broken in December 2019 by UPI with 1.30 billion transactions worth INR 2 trillion.

Bottom line

These numbers are not going to stop here as the adoption of UPI solutions by people is increasing day by day. The UPI has proven to be one of the most downloaded apps in the year as digital transactions are more preferred than ever before.

Digital Security: The Importance of Two-Factor Authentication

Nowadays one thing that concerns electronic data storage is security. With the steady rise in the security breaches, digital crime and internet fraud, you have to be extra cautious and vigilant about your data on the internet. One side, using strong passwords and frequent changing of the same is recommended for protecting your data. But the hackers are hungry for passwords. They might steal your password and use it or sell it to use your bank details and personal information. In such scenario an extra layer of protection is what any one looks for. Two-factor authentication solution serves the purpose by providing a protection shell for your information and keeping the cyber thieves at bay.

What is 2FA?

The two factor authentication is also known as two-step verification. It combines your password and username with your phone or the physical security key like your fingerprint. When online, there are many websites which you login by just using your username or password. This is one-step verification. But when using two-step verification you have one-step verification after entering the username and password. The site sends a text message to your mobile phone with a six-digit code, after entering the first set of credentials. This code is often called as an authenticator or a passcode or verification code. Only when you enter this code you will be granted access to the website.

As many are adapting 2FA method, a lot of companies and sites provide two factor authentication services.

Importance of 2FA

As mentioned above, gone are the days when you trusted blindly on your password to protect your details. There are lots of ways in which a password can be breached. Anyone can memorize your password or there are malwares to crack it. It can also be susceptible to credential stuffing and brute force attack by hackers to break into your account. But by enabling two-factor authentication your account can be automatically protected from these automated login attacks.

Protects you from phishing email

Two-factor authentication protects you against the phishing mails. When someone sends you a dodgy email and wants you to log in using your Google or Facebook account and password into a fake account, two factors can protect you. Only legitimate site will send you authentication code. There are different types of 2FA which benefits you with increased level of protection.  One method of protection is better than other method of protection.

The various 2FA for data protection

There are four main types of two factor verification which follows below based on the degree of effectiveness

Text message code: It is the most common form of code that is sent via SMS. It is easy to get started. It is the least effective method compared to the other 2FA. The hackers can exploit the weaknesses of the network and get hold of your code because SMSs are not encrypted. But as far as your phone is with you it can prevent breaching to some extent.

App code: You have to install an app on your Smartphone which will receive a code from the site’s 2FA providers while logging in. As the code is sent via HTTPS connection, someone snooping in before you get the code is impossible. 

Biometric verification: A fingerprint scan or iris scan or a facial recognition is employed to verify that it is you. This is used in an enterprise setting. These are less common but highly efficient.

Physical key: The strongest of all the other methods. A physical key like a USB stick is used to log in to your account. The cryptographically encrypted unique key in the USB will open the account. Even if someone gets your password they cannot access your account without the key.

Bottom line

2 Factor authentication has come really handy when considering the security of your account. Though it is not the ultimate panacea, but it is a best way to ensure security. Enable 2FA for your services from the best 2FA service provider.