The popularity of mobile payment systems and apps have
skyrocketed over the past few years. Consumers are constantly
looking to technology to improve the speed and convenience of
purchasing goods and services. Because of this, global mobile pay
volume is predicted to increase to $6 trillion by 2024.
(Squareup.com, 2017). Some examples of mobile payment systems
include PayPal, Apple Pay, Google Pay and Square. The increasing
growth of these mobile payment systems isn’t slowing down
therefore it is important for PBI to adopt these systems and
implement them correctly.
c c c c c c c c c c Mobile payments use a technology called Near Field
Communication or NFC. NFC is what enables two devices, like your
phone and a payment reader, to communicate wirelessly when
they’re close together. (Squareup.com, 2017). For these payments to
process you must have a mobile wallet set up in your phone that
links your payment cards to it. When you place the phone to the
reader the amount of the transaction is taken from your card on file.
c c c c c c c c c c As with all credit payments, there are regulations that must
be followed with their use. PCI DSS or Payment Card Industry Data
Security Standard is a set or regulations that companies who process
credit payments must adhere to. When using a smartphone, tablet,
or other mobile point of sale (POS) system, these same standards
apply along with specific mobile payment standards. (Dwyer, 2019).
Failure to follow PCI DSS regulations can result in fines and even the
ability for your company to accept credit payments.
c c c c c c c c c c The use of mobile payment systems and technologies
introduces privacy and security issues that must be realized and
addressed. Mobile payments are made using NFC devices therefore it
is important to be aware of the risks involved. Much university
research has shown that it is possible to listen to a 13.56MHz NFC
communication up to 30 to 40 meters. (Springcard.com). This type of
attack is called eavesdropping as an attacker could intercept the data
being transferred. To avoid this, encryption must be utilized so that
the data gathered by the attacker is useless.
c c c c c c c c c c Cybercriminals can also misuse your account numbers
when you add credit or debit cards to payment apps using public Wi-
Fi. Criminals can easily spoof off all the details used for making the
transaction used while registering. (Shastri, 2019). Instead, complete
this process at home using a password protected Wi-Fi connection.
c c c c c c c c c c There are also privacy concerns when dealing with mobile
payment applications. Mobile payment providers are susceptible to
data breaches where criminals can access the private information of
customers. Databases that contain customer PII and credit card
details can be hacked into if the proper security measures are not in
place. An attacker can infiltrate these databases and steal customer
information to sell on the dark web which in turn creates identity
theft for the victims.
c c c c c c c c c c While mobile payments seem to be the way of the future,
consumers and businesses alike must be aware of the security and
privacy concerns that go with it. We must all do our due diligence to
be sure our sensitive information does not end up in the wrong
hands.
References:
Squareup.com. April 24, 2017. What Are Mobile Payments? And
How to Use Them.
c c c c c c c c c c https://squareup.com/us/en/townsquare/mobile-payments
Dwyer, Ben. November 7, 2019. PCI Compliance for Mobile Devices.
c c c c c c c c c c https://www.cardfellow.com/blog/pci-compliance-for-
mobile-devices/
Springcard.com. How to avoid the hack into a NFC communication.
c c c c c c c c c c https://www.springcard.com/en/learning/how-to-avoid-the-
hack-into-a-nfc-communication
