Commenting on multi-currency e-wallets, SMU Assistant Professor of Finance (Education) Aurobindo Ghosh said banks typically have sizable teams monitoring user data and patterns to detect fraudulent transactions in real time. Such capabilities are also being enhanced by technology like artificial intelligence. But these are “costly”, and banks will have to pass on some costs as fees to its card holders in order to keep providing extensive security and other features, he said. “So, whenever we are choosing a multi-currency digital wallet, we forego some of the enhanced security features for lower cost,” said Asst Prof Ghosh. He noted that there may be a need for further regulatory requirements on customer protection, so that e-wallets do “not rely solely on third-party payment service providers like Mastercard or Visa” for fraud resolution.
