What should consumers do when digital wallets face regulatory changes?

financialexpress.com:

Financial landscape is rapidly changing, and many companies are adapting these changes based on the technology and the local and international regulations with regard to their respective businesses. Often one regulatory decision creates panic. The recent troubles faced by Paytm, one of India’s leading digital wallets, have sent shockwaves through the fintech industry and raised concerns among consumers. While the clarity is still needed with regard to the RBI regulations, it’s crucial for users to be aware.

One of the most important things is that consumers must know what to do and how to process the information available to them through multiple platforms. Here’s a breakdown of key takeaways for consumers in the wake of the Paytm event.

Consumers often prioritize convenience when making online transactions, neglecting due diligence on the merchant’s legitimacy. This can lead to situations where fraudulent merchants exploit the platform to dupe users. To mitigate this risk, always research the merchant before making a purchase. Look for reviews, check their website and social media presence, and be wary of deals that seem too good to be true.

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While some platforms offer legitimate investment options, others might exploit the trust associated with digital wallets to lure users into fraudulent schemes. Never invest based solely on promotions within a digital wallet. Conduct thorough research, understand the risks involved, and only invest through licensed and regulated channels.

Be mindful of the data you share with digital wallets. Read their privacy policies carefully, understand how your data is used and shared, and only grant access to information that is