Along with many other electronic devices, mobile devices have become premium targets for cybercriminals. As such, nowadays, corporate breaches and widespread mobile device vulnerabilities have become the order of the day in the News. People are therefore shying away from mobile payments and mobile wallets, despite this becoming a popular mode of payment.
If you’re concerned about the security of buying with your phone and the storage of payment information in a mobile wallet, here is a comprehensive guide:
Is Mobile Payment Secure – Yes or No?
Yes and no – it’s not a clear-cut answer. Rather, security depends on a couple of factors. Generally speaking, however, mobile payments can be more secure than cash because you can track, lock, and delete your phone’s data. However, mobile pay comes with its fair share of risks namely data privacy, liquidity risks, and cybersecurity risk.
Nevertheless, mobile payments continue to be superior. Practically everyone brings their phone with them everywhere they go. Consequently, mobile payment alternatives have the bonus of convenience. Transactions performed on a mobile device are frequently faster.
One study found that whereas using a card to pay for a train ride takes about 12 seconds, Apple Pay only needs one. Although the 11-second difference may not seem like much, every second counts when you’re in a long line at a grocery store or coffee shop. Digital wallets also simplify online or digital purchases like subscriptions and paid apps.
Digital wallets such as Apple Pay don’t use your actual card number for transactions, making them more secure than chip cards. Your card information is only utilized in the initial setup of the wallet as a security step, which helps to strengthen mobile payment security. The wallet then generates an encrypted token (think of it as a temporary card number) that is used in place of your card number.
As a result, even if a hacker succeeded to break the token encryption, they wouldn’t be able to see your card or personal information because the token number isn’t connected to your account. The token isn’t a general credit card number that may be used elsewhere, which is an even greater feature. It cannot be used outside of the transaction for which it is specifically coded.
As seen, as technological advancements in online security are realized, mobile payment is becoming more secure by the day. While tapping your digital wallet to a payment scanner may appear simple in operation, the backend work should offer consumers considerable confidence that mobile payment is secure, particularly when using digital wallets.
In light of all this, we can confidently assure you that popular mobile wallets such as Samsung Pay, Microsoft Pay, Google Pay, and Apple Pay, are secure. If anything, these payment options are typically considered to be more secure than conventional cards. Cards have an identifying magnetic stripe, and if criminals tamper with a card reader by installing a skimmer, they can readily steal information from it.
How to Use Your Phone to Make Secure Payments
You will require a smartphone with near-field communication (NFC) capabilities in order to make secure digital payments with your mobile device. Fortunately, the majority of modern cellphones introduced in the previous few years have this functionality (imagine it as a Wi-Fi signal).
Step 1: Get a mobile payment app on your phone.
(Apple phones will come preloaded with Apple Pay, while Android users will have the option of using Google Pay or Samsung Pay if they have a Samsung smartphone.)
Step 2: Fill in your payment information.
Load the information on your card on the app and you’ll be good to go. With some programs, this could be as simple as snapping a photo of the card’s front.
Step 3: Double-check your details with your bank.
For additional security, most banks require that their clients phone their bank to verify their identity and affirm that they are setting up mobile payment options in most apps.
While not all businesses accept mobile wallet payments, a significant percentage of them do. This is because mobile payments are convenient and with you everywhere you go. Today, they are also proving to be more secure. Simply check whether a business accepts mobile wallets and enjoy exceptional convenience!