d d At this firm, the CFO has recommended that two teams be created to
prioritize two specific pieces of technology, micro payment cards and mobile
payment systems. For this review, mobile payment systems will be covered.
One can attribute mobile payments to involve services booked primarily
through the front desk using an authorized third-party provider in lieu of the
hotel employees. Typically, these mobile payments are facilitated using a smart
phone device or, for some, a fitness tracker.
d d d d d d d d d d d d d According to Ainsworth (2022), the CFO can assist in identifying
whether or not mobile payments is a feasible opportunity for the organization.
There are several variables that need to be considered in this case. This includes
how the mobile payment system can be developed, which independent
organizations can be utilized to process those payments, and how mobile
payments are accepted. It is important to emphasize, however, that there may
be security risks that could arise with the implementation of a mobile payment
system. For instance, Porche (2017) noted that an organization may be at a
higher risk for having sensitive consumer or employee information stolen, and
they also may be at a greater risk for falling victim to malware or a security
attack, such as through spoofing. With that said, with these threats in mind, it is
necessary to go over both privacy- and security-related implications for this
company in order to figure out how to best implement a mobile payment
system.
Five Privacy and Security Issues That Could Arise with Use of Mobile
Payments
d d d d d d d d d d d d d Several issues have the potential to occur when using a mobile
payment system. For this report, these problems will be prioritized based on
financial factors and security processes. As indicated by Shastri (2019), the use
of mobile payment systems puts an organization at an increased risk of threats
that they may otherwise not encounter. One example of this is the use of
malicious hackers spoofing the digital wallet of mobile payment users, which
causes the financial information stored in these devices to become stolen. This
could have a significantly negative impact on the credibility and reputation of
the organization.
d d d d d d d d d d d d d Along with this, Porche (2017) emphasized that mobile devices are
not well protected against malware, which has the potential to be spread
throughout mobile devices, with mobile payment systems being a basis for
such. Specifically, Porche (2017) noted that “Mobile malware is becoming
more prevalent, and some of it is very destructive" (para. 17). As such, this
company could additionally experience cases of mobile fraud, which is when
customers use fraudulent or misrepresentative devices to engage in fraudulent
activity. An example of this is the use of a cheap cell phone as a means to make
fraudulent transactions on the mobile payment system. This could result in the
organization losing out on important revenue. Individuals could additionally
have their account information compromised as a result of malicious
individuals illegally accessing those mobile devices, where they may also
engage in identity theft and bring forth more fraudulent charges.
d d d d d d d d d d d d d Lastly, another significant issue related to privacy and security with
the use of mobile payment systems involves the risk of data leakage. Mobile
payment systems require the use of devices that host a range of sensitive and
personal information, such as bank account details or one’s home address. That
information could quickly be stolen or otherwise compromised with the use of
a mobile payment system. This is because a data leakage or an instance of a
data breach could cause people’s sensitive information to be given up. The
company would face severe backlash as a result of this, and they would likely
see a decline in the reputation, as well as a revenue stream.
Conclusion
d d d d d d d d d d d d d As a whole, many organizations have benefited from the
implementation and use of mobile payment systems. This is because the
systems can bring about immense convenience and advantages to
organizations. Consumers, as a result of evolutions and technology, are
beginning to set a new expectation for companies to have mobile payments as a
permanent option for them. Mobile payments improve many aspects of an
organization in its processes, including with regard to paying for hotel services,
booking rooms, and similar. Regardless, mobile payment systems also come
with distinct risks. In particular, mobile payment systems exacerbate the threat
of data being lost or stolen, and this can cause drastic problems to the
organization, particularly with regard to its revenue and its overall reputation.
Because of that, prior to developing a mobile payments system for consumers,
it is imperative to ensure that an appropriate security infrastructure and set of
security procedures have been put into place.
References
Ainsworth, P. (2022). The Role and Responsibilities of the Modern CFO – A
Function in Transition. Top Total. https://www.toptal.com/finance/interim-
cfos/role-of-the-cfo
Porche, B. (2017, December 14). 3 major mobile payment security risks, and
how to avoid them. Credit Cards. https://www.creditcards.com/credit-card-
news/mobile-payment-security-risks/
Shastri, N. (2019, August 19). 5 Mobile Payment Security Concerns to
Consider. Payments Journal. https://www.paymentsjournal.com/5-mobile-
payment-security-concerns-to-consider/
