Do Mobile Payments Offer Better Security?

By Stephanie Howard, Groovy

Mobile payments seem to be all the rage these days. Whether they are done at an Apple Pay terminal, via an NFC reader or a smartphone equipped with a reader, mobile payments are fast becoming a widely accepted way to purchase items and services. Many customers find this form of payment to be cutting-edge and fast, but is it as secure as the hype would suggest?

To grasp the security benefits of mobile payments, it is important to understand three of their most unique features. First, vehicles such as Apple Pay use biometrics to make the purchase process even safer and more seamless. In order to complete an Apple Pay transaction, the customer’s iPhone uses Near Field Communication (NFC) to connect the phone with an Apple Pay terminal. The customer’s credit card information is authenticated in the phone’s wallet app via NFC as well as the customer’s unique fingerprint, which is pre-stored in the phone. Fingerprints, facial recognition, retina scans, handwriting and even voice are all examples of biometrics that could make authentication easier and eliminate the need for customers to input a password every time they want to make a purchase. In a retail environment, where checkout speed is as important as security, this feature could serve to greatly boost the widespread use of mobile payments.