Mobile Payment Risks and Prevention Steps

Mobile payment risks

What is the Mobile Payment?

The method of payment for the product and services between the buyer and the seller is the mobile phone that plays a key role in the realization of the payment. Recently, the scales of convenience in the daily lives of people have improved drastically with the introduction of internet. From laptops to iPads, we are now successfully using smartphones. The barriers of communication were crossed long back with the help of the mobiles and which has now moved to the easy payment options after all. Any technology advancements generally associate some risks and challenges to it. The Mobile Payment Risks is one such question that risks your mind due to the increase in the number of internet crimes. Want to do the payment online but still not well enough introduced with the internet security tips? Don’t do that to yourself. 

Introduced about a decade ago, the adoption of payment methods with the help of the mobile was a little low.

What are the Mobile Payment Risks?

The Risks associated with the Mobile Payments affect both the parties, that is, the Users and the Service Providers.

The new process creates new security vulnerabilities. The mobile payment includes Over The Air transmission. This may create or give rise to the new leakage points of the payment credentials. The Security Vulnerabilities leads to identity theft, information disclosure, and replay attacks.

It misses the two factor authentication and hence can lead to Fraudulent Transactions.

There are chances of inadvertent installation of malicious software. This can lead to theft of authentication, information disclosure and transaction repudiation.

The increase of the number of transactions can lead to performance bottlenecks that in turn degrades the customer experience.

Inability to understand the procedure can further increase the risk.

The mobile payment service needs to comply with the legal regulations,whether it is consumer based or financial based.

The members of the mobile payment ecosystem need to be conscious as the volume and the type of data flow increase.

It is a contactless technology and hence the chances of fraud and security poses a serious concern.

What does it need to reduce the Mobile Payment Risks?

The Mobile Wallets can help the retailers in the emerging markets to manage the large amount of daily transactions. This will increase the loyalty of the customers towards the merchant banker.The Mobile Wallets provide a great channel for distributing coupons and special offers. Following steps should be taken in order to reduce the Mobile Payment Risks:

A compatible Merchant site that transforms the payment steps to the much simpler levels.

The Google Wallet App

The Application includes establishing the Near Field Communication (NFC). It can make the payment with the credit card easy with just a tap. The Phones that have the Google Wallet App installed can tap their mobiles on the machine. This machine will automatically sap credit card information from the google account of the user. However, as of now the app works only on some of the devices.

Apple’s Wallet

The Apple has introduced its digital wallet for the iOS users who want to secure their payments made through the mobiles. Before you install any application just make sure about the features and benefits of it. It allows you to keep the credit, debit, store cards,boarding passes, movie tickets, and more in one place. For the efficient use, just follow the instruction to take the excellent screen shots to master everything.

Lemon Wallet

It is a powerful app that allows you to store and use your debit, credit and other card details. The application can be used for iOS, Windows and Android based phones. Your information entered is converted into the bar code that is to be scanned by the merchants. Lemon Wallet allows the users to check the balance and transactions also.The app is passcode protected that obviously you should not share with anyone. Maintain your expense records to track your spendings.

Square Wallet

Another application that can reduce your mobile payment risks, is Square Wallet. iOS and Android users can have this. Simply link your credit card with the app, but it will pay with the merchant cards. There is a list of merchants with Square.You can select your favorite merchant which will definitely preserve your personal information and data.

The merchants and the bankers should introduce the trusted platform module (TPM), secure protocols, encryption.

Each transaction should also have the authentication of both the user with the PIN code. This may include Two Factor Authentication with the simplified user interface.

Mobile Payment Chit-chat

However, The mobile payment transactions involve several players like third parties without clear lines of accountability. The financial, payment and network service providers should also take care to implement the safeguards and privacy and security governance.

The payment platform should generate more of dynamic card verification values. To avoid further leakage of information, the Visa and Master Card are also working on their own mobile payment apps. They would develop the system where the users would simply need to tap their phones on the stores to make the payments.

As the hackers grow their skills incredibly, the merchants and the bankers need to update the security checks to avoid any further hacking or cyber attacks.

Apart from keeping the mobile payment secured, it becomes your own duty to keep the mobiles secured. You should always lock your phone after use. In case, you lose the phone, your information will be safe if you have a strong pin and password.

Keep the payment app updated along with the application updates. In case, your phone is not updated,there are chances that your phone can have some virus or a malware that steals the authentic information from our phone.

The mobile payment gets vulnerable to the following things:

Use of Public WiFi

Stolen devices

Phishing attacks

User Error

Weak Passwords

Conclusion

Over the years, these methods are prioritizing for the mobile payments:

Debit Card seems the most trusted sources of payment.

Loyalty and Reward points always attract the customers.

So, Email is one of the most preferable sources of communication for the customers who make the payments via mobile.

Avoid sharing information and sharing the mobile unless it is unavoidable. As a result, this will save you from financial loss and data leakage. Besides all that we mentioned, learn everything you need to know about the cyber security tips!

In conclusion, I am pretty sure this article is very useful for you.

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