With the transition of the financial world to the digital landscape, mobile payments are growing increasingly popular. As with any other mode of financial transaction, there are always concerns and questions regarding safety and security.
For this, we called in the experts who discuss the safety and security of mobile payments.
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I think that from a security standpoint, safe is a relative term. What I mean by that is that if someone had infinite resources and time, they could break into any system with enough effort.
In the case of mobile devices, it would be theoretically possible to get access to your account on an individual device through some sort of malware installed on the phone or tablet so there's at least theoretical risk anytime you have a connected device in proximity to your email or other important accounts.
However, as of today, mobile payments are one of the safest forms of payment. When you use Google Wallet or Apple Pay, for example, your actual credit card number is never shared with the merchant. Instead, an authorization is sent to the merchant.
None of your financial information is shared with the merchant, so even if it falls into the wrong hands, they can't do anything with it.
Mobile payment options are about as safe as credit card payments. In fact, some mobile wallets like Apple Pay and Google Pay are safer than your conventional credit card. The use of OTPs and tokenization in mobile payment systems are convincing reasons for trusting mobile payment solutions.
The idea that mobile payment is unsafe is tied to the notion that anything tech and internet-related is inherently unsafe. Nothing is further from the truth. While there are a bunch of prevalent cybersecurity risks associated with every system, most of these threats can be avoided by engaging personal cybersecurity discipline.
For instance, using a trusted mobile payment option is crucial for the safety of your mobile wallet. Just like credit card information, one also needs to keep their mobile wallet logins private. On both sides, I think that keeping your phone secure and avoiding untrustworthy sites are the first lines of defense for mobile payment options.
Risk aside, mobile payment offers a host of advantages for users. The existence of risks, which is inherent for all tech systems, doesn't make mobile payments unsafe or decimate the trust in them.
Mobile payments are totally safe and reliable. However, one always has to be responsible while making or receiving payments over mobile. Enabling two-factor authentication, using One Time Passwords, not sharing details over social media and messaging apps, not saving details on a browser, and using only reliable apps are some best practices that every mobile payment user should consider.
The latest models of smartphones ease the pockets of their customers in the literal and figurative sense - they cost a lot and seem to begin to replace customers' wallets. Mobile banking in smartphones is nothing new, but users are just getting used to the ability to pay by touching the gadget to a terminal using Apple Pay and Samsung Pay technologies.
The transition to the digital world is fraught with the illusion of security: a smart gadget will stand up for itself. But this is only partly true - security depends primarily on the user's behavior. Therefore, whatever financial applications for smartphones you use, it is worth mastering the techniques of mobile payment security first. The theoretical danger can come from attackers with social engineering techniques.
Over the last year, these methods have gained popularity: using data from public sources (social networks, ads for the sale of goods, dating networks), attackers ferret out information from users about access to remote banking services. Having obtained this information, they can act on behalf of the customer.
Mobile payment is safer than physical cash payment because passwords can protect mobile phones, and the data can also be deleted for that extra safety. However, a secure WiFi network must be used to make mobile purchases so that the threat of cyberattack or theft can be eliminated. Therefore, mobile payment services are better to be processed through a private network for additional security.
Smartphones also contain built-in security protections, which ensure that there are fewer risks of data leakage. All in all, mobile payments are more secure and efficient than physical payments.
Mobile payment is one of the most convenient ways to pay off your credit card in our fast-paced society. It eliminates the hassle of paper billing and creates an environment in which money can be given quicker and at the drop of a hat. How secure are these transactions, though? The answer lies in the app on your phone that you are using to give the money away.
If you are going through a reputable bank with a slew of security features, then there is probably nothing to worry about. Face ID, Touch ID, and several passwords are required before paying a credit card with your banking app. Never give this banking information to any source except a trusted one that has been thoroughly vetted. If you want to pay a stranger or a company online, use PayPal or Zelle.
These companies have deals with big banks, so you know the money is going directly from your account to the receiver without any funny business in between.
Nichole Godines finished a post-graduate program in Digital Marketing at Purdue University. She has assisted businesses with her exceptional marketing strategies.
