What is the primary purpose of authentication in electronic payments?

The primary purpose of authentication in electronic payments is to ensure the security of the payment account. Authentication helps verify the identity of the parties involved in a transaction, confirming that the person initiating the payment has the authority to use the payment method. This security measure is crucial in preventing fraud, identity theft, and unauthorized access to sensitive financial information. By establishing the legitimacy of the user, authentication helps maintain the integrity of the payment system and builds trust between consumers and financial institutions.

In contrast, while encryption protects data during transmission, it serves a different function that complements the authentication process. Generating digital certificates is typically related to assuring the identity of parties in a transaction but is not the primary purpose of authentication itself. Similarly, storing customer data securely is essential for data protection, but it does not specifically address the need for confirming user identity during a payment process.