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 increased tod $6d trilliond byd 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.
d d d 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.
d d d 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.
d d d 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.
d d d 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.
d d d 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.
d d d 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.
d d d https://squareup.com/us/en/townsquare/mobile-payments
Dwyer, Ben. November 7, 2019. PCI Compliance for Mobile Devices.
d d d https://www.cardfellow.com/blog/pci-compliance-for-mobile-
devices/
Springcard.com. How to avoid the hack into a NFC communication.
d d d https://www.springcard.com/en/learning/how-to-avoid-the-
hack-into-a-nfc-communication
Shastri, Nirav. August 19, 2019. 5 Mobile Payment Security Concerns
to Consider.
