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Enterprise Security Magazine | Thursday, May 11, 2023
Apple Pay launched in 2014, fueling the popularity of mobile payments and providing consumers with a new level of convenience. Samsung Pay, Android Pay, and Google Pay are among the companies that have joined this increasingly popular, competitive digital payments landscape. Security concerns surround mobile payments, however.
Fremont, CA: Payments made via your mobile device are called 'mobile payments.' In addition to mobile wallets and mobile money transfers, mobile payments also include mobile money transfers. In brick-and-mortar stores, there are two types of mobile payments: online or in-app purchases.
From 2020 to 2027, mobile payment revenues are expected to reach $12.06 trillion, a CAGR of 30.1 percent. Smartphone popularity can be credited with amazing growth. Every five years, the number of smartphone users worldwide is expected to increase by one billion, which means that by 2023, there will be 4.3 million smartphone users worldwide.
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Apple Pay launched in 2014, fueling the popularity of mobile payments and providing consumers with a new level of convenience. Samsung Pay, Android Pay, and Google Pay are among the companies that have joined this increasingly popular, competitive digital payments landscape. Security concerns surround mobile payments, however.
How do mobile payments work?
NFC, or near-field communication, is a technology that enables contactless payments to be made and accepted by consumers and businesses. Smartphones, such as Apple and Google Pay, use NFC technology to allow users to use their phones to make purchases at payment terminals.
Mobile devices and POS terminals connect via NFC technology during a contactless payment. When the consumer validates their identity with a passcode or fingerprint, money will be transferred from their account using close-proximity radio frequency identification. No sensitive information is taken from the card. Instead, tokenization is used to replace it.
Are mobile payments secure?
The problem of data breaches is not yet over. The Samsung Galaxy 8 Iris Scanner scam in 2017 was one of the infamous attacks against technology security.
Consumers in the US believe mobile payments are "poorly protected" (38%) compared to prepaid (28%), debit (22%), and credit cards (9%). In comparison to using a credit card on its own (61%), only 35% of consumers reported being well protected by mobile payments using a credit card.
The reality of mobile payments is that they are safe, including tokenization, cryptograms specific to the device, as well as two-factor authentication:
Tokenization
The tokenization of mobile payments promotes the use of mobile payments while protecting sensitive customer data from hackers.
A cyber-attack will only allow thieves to access tokenized data if a merchant system is compromised. Cybercriminals cannot access tokenized data since the data is encrypted with a random value.
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