An Analytical Study on the Security Features of Digital Payment Systems with Special Reference to Blockchain Technology

The internet and technological advancements have revolutionized the financial system. The digital payment system, based on technology, has emerged as a widely popular payment method. The Digital payment system offers users a convenient, fast, secure, and comprehensive payment environment. To use the Digital payment system, the users must take the help of many things, such as a bank account, computer or mobile device, internet, etc. Under the Digital payment system, when any transactions are executed by the users, then the respective transaction has to go through many steps or processes for its successful execution. Since a large section of the present population has become a part of the internet system, huge user data keeps on flowing on the internet. Techniques to protect users’ data are developed from time to time, as well as parties known as hackers try to exploit these security techniques by finding loopholes and misusing them. Various methods are used for the authentication of transactions under the Digital payment system, for example, OTP verification, bank authentication, etc. Cryptography and Blockchains are such security technology that is making transactions secure with their different methodologies and working pattern. In this paper, various security features used in Digital payment systems will be explored and security techniques of Blockchain technology will be analyzed analytically. An attempt will also be made in this paper to know the opinion and perceptions of the users about the various security features used under the Digital payment system.