Mobile Payments: The Good, The Bad, The Security

  • Phone Verification

The term mobile payments is often used interchangeably for mobile banking or used as a general term to describe paying for something on your mobile device. What some consumers and even business owners may not understand is that mobile payments can mean one of three things. There are three different type of mobile payments: mobile commerce, mobile payments, and mobile wallets. Each one accesses and uses personal information in a different way. Security of personal information has become a major concern to both companies and consumers utilizing mobile payments. In an infographic created by SapientNitro, it states that 69% of users polled in the US and Europe worry about privacy when using mobile payments. Consumers have also ranked they concerns about their credit card information as the second top reason as to why they dont use mobile shopping more.

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One of the largest hurdles that a mobile payment creates is that consumers and businesses have different obstacles and priorities. The major factor that appeals to consumers is convenience whereas the top priority for companies is security. So is it possible for everyone to win? Absolutely. Companies just need to realize and understand the threat of ID theft associated with each type of mobile payment. As Jim Van Dyke stated in his interview with Bank Info Securityfew banks are utilizing real-time authentication, which is a major factor that can improve security and support fraud detection. Using out-of-brand identity verification and authentication will not only give consumer more control, but piece of mind as well.

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Infograpic provided by SapientNitro