Introduction
Companies all over the world have embraced e-commerce as one of
the most recent IT advances. Despite its economic value, shadow IT
raises security and privacy problems. I'll talk about the problems with
mobile payments in my article. Employees install mobile wallet apps,
and stores have the requisite payment processors to process
contactless purchases. In our situation, we use mobile payment via a
credit card connected to the provider's phone or directly through the
phone. I'll go through the financial components of this manner of
payment, including how payments are made, information transferred,
and how private information is safeguarded.
The main body
Businesses must choose the right bank to provide mobile banking
services. Pricing, where the organization benefits from a less
expensive system, investment costs, and revenues are all elements
that must be decided upon. In addition, the bank and the enterprise
must agree on how to value contributions and benefits (Apanasevic,
2018). Although the mobile payment service is useful, it is fraught
with privacy and security problems. Implementing utmost security
protocols on mobile banking can have the unintended consequence
of reducing usability and limiting customer preferences. The
consumer, the merchant or service provider, the payment service
provider, and the authorizer are the four major stakeholders in the
payment process.
When mobile payment parties link in two different connections,
especially in transactions where the company uses a credit card to
join the provider's phone, this is a common security risk, especially in
places with less advanced technology. One of the parties may be at
an unsafe area in this case. Another point of worry is when the
parties encrypt and decode the connection content. During the
transaction, the process is vulnerable to threats due to the ongoing
encryption and decryption. As previously stated, the mobile payment
procedure necessitates the participation of four parties in order to
be completed. Even while the procedure protects stakeholders, it
may pose a security risk due to the presence of agents. Before
permission, the authentication procedure necessitates the disclosure
of customers' private information and credentials. Customers'
sensitive information, such as banking credentials and passwords,
may be leaked if agents involved in the authentication process are
compromised. Both the organization and the client may suffer losses
as a result of the process.
Malware is frequently associated with technology, which is prevalent
even in financial operations. Viruses and malware, which typically
conduct unlawful operations, can infect mobile devices. Malware has
the potential to send sensitive customer data to unauthorized
parties, resulting in data leakage. M payment becomes a potential
danger in this instance. (Pouralinazar,2013). Users of mobile payment
systems are sometimes hesitant to trust them because, instead of
charging their money with a well-established physical institution,
such as a bank, they must entrust their accounts to software
operators. The latter must develop a solution that effectively reduces
fraud while ensuring user-controlled and transaction-specific privacy.
The technical and societal aspects of security are of concern.
Because most mobile payment services necessitate the use of
applications, fraudsters may take advantage of the situation by
creating harmful app clones. The apps are laced with viruses that
steal personal information from customers when they use the cloned
apps. Companies can limit the risk of personal information being
leaked by enforcing rigorous rules that require the usage of only
mainstream apps. However, when users utilize several devices that
are vulnerable to hackers and fraudsters, mainstream apps may fail.
All of the stakeholders involved are concerned about privacy and
security when it comes to M payment (Tkatchuk,2016).
Summary
Although mobile payment is a useful E-Commerce tool, it is fraught
with privacy and security concerns. In order for the payment method
to be effective, the organization must implement security measures
to address these concerns. Multiple authentication requirements,
which may result in data leakage, extensive hardware and software
use, malware and viruses, which predisposes the system to hacking,
malicious app cloning, insecure connections, and a breach of trust
due to multi-user involvement are just a few of the issues identified.
Establishing ways to deal with security problems may also make the
process less workable. Finally, there are both technological and social
issues about security and privacy.
References
T. Apanasevic, (2018). Opportunities and challenges of mobile
payment services. Retrieved from https://www.diva-
portal.org/smash/get/diva2:1199256/FULLTEXT01.pdf
B. Pouralinazar, (2013). The system for secure mobile payment
transactions. Retrieved from
https://www.diva-
portal.org/smash/get/diva2:616934/FULLTEXT01.pdf
R. Tkatchuk, (2016). 5 security concerns with mobile payments.
Retrieved from
https://www.practicalecommerce.com/5-Security-Concerns-with-
Mobile-Payments
