By Fredrick Waltitu 

All Hail AI!” was the buzzword when generative AI took the world by storm. However, when people learnt how these language models were trained with people’s data without their consent, it raised concerns about data security and trust.

Similarly, as digital payments become the new face of commerce, trust has become the key currency that defines a company’s success or downfall.

For Payment Service Providers (PSPs) data privacy is not just a checkbox anymore; it is the bedrock of customer loyalty and sustained growth.

Why is data privacy important?

Think of all the data you generate every time you make a digital payment, from your personal information to your location and financial details.

Now imagine what happens when this information is mishandled or even worse, exploited for ill intent.

It is no wonder that 94 percent of consumers, according to the Cisco 2024 Data Privacy Benchmark Study, say they wouldn’t purchase from a business they don’t trust to protect their data.

Data breaches can destroy customer confidence in addition to causing enormous financial damages.

Years of work to establish credibility and a clientele can be reversed by a single data leak.

For PSPs, prioritising data privacy is not just about keeping hackers at bay, it is about building a solid reputation. Reassuring your customers that,” We’ve got your back” in today’s world is worth its weight in gold.

By embedding privacy into the operations and company foundation, PSPs can secure customers, drive loyalty to the brand and ultimately execute their digital payment strategy since in this field trust begins with privacy.

How much are companies spending on data privacy?

Safeguarding data privacy can lead to financial gains! The Cisco study further states that in 2023, companies spent an average of $ 2.7 million on privacy initiatives with large corporations increasing their budgets by 7-8 percent as a result.

For every $100 spent, businesses saw a $160 in returns. Additionally, this is not just about computing losses from breaches, but it also incorporates improved efficiency, stronger customer relationships and a clear competitive edge.

The financial benefits of investing in data privacy extend beyond avoiding penalties. Companies that prioritise privacy witness enhanced customer loyalty to their brand which results in high retention rates.

This serves as a golden ticket, especially in a competitive market like the payment industry where customers are more likely to choose and stick with businesses they trust.

So, then the question isn’t, “Can we afford to  prioritise data privacy?” but rather is, “Can we afford not to?

How digital payment companies are leveraging data privacy to build trust

Leading in digital payments goes hand in hand with making data privacy a fundamental pillar of business strategy.

Take Network for example, a provider of technology-enabled payment services in the Middle East and Africa region.

The company has designed a multi-layered defence system that provides e