As a consumer, mobile payment solutions using
wireless communications are a quick and easy way
to make retail purchases. For the service
provider, imagine the benefits of being able to
track consumer buying history with their current
How does it work? The phone must be equipped
with a Near Field Communications (NFC) chip. The
chip stores bank or credit card information in a
secure manner. When the consumer is ready to
make a purchase, the NFC chip wirelessly
transmits the appropriate information when in
range of a retail register.
Consumers have several alternatives for
mobile payment solutions:
- Apple Pay. Apple Pay is a mobile payment
and digital wallet service by Apple Inc.
that lets users make payments using the
iPhone 6, 6 Plus, and later.Google.
- Consumers download a Google Wallet
application and may use a PayPass (does not
require physical contact) Citi Mastercard or
a Google prepaid card.
- Visa. With Visa's PayWave software, the
consumer starts the application, initiates
the payment process, and waves the phone
near a compatible reader.
- ISIS. American Express, Visa, and
MasterCard are partnered with ISIS to
provide mobile payment solutions. ISIS's
digital wallet application can be customized
by the major carriers AT&T, Verizon
Wireless, and T-Mobile.
One of the benefits of mobile payment solutions
is the ability to automatically track purchases.
With merchant loyalty programs, the payment
solutions can let the consumer know about the
deal of the day or when they are close to
receiving a free gift.
Merchants also benefit by being able to track
consumers, their locations, and their buying
habits. The technology also allows merchants to
present consumers with a variety of offers and
- Ads can appear on Google Place pages
that show listings of restaurants, retail
- Google search engine results pages (SERP)
can display relevant ads
- Tied to a person's location, Google
Offers can present consumers with specific
Security and privacy
To make a payment, consumers must start the
wallet application and press a button. At that
point NFC technology encrypts the data when
transmitting payment information to the retail
device. Some vendors don't store banking and
credit card information in the wallet. Instead,
the sensitive information is securely stored on
a chip. Even with these controls, security risks
While most traditional wallets are carried in a
pocket or purse, smartphones are frequently
carried in your hand, placed on a table, or left
next to a briefcase. Consumers must protect
smartphones from traditional physical security
risks such as theft or damage.
Since wireless technology is used, it may be
possible to capture or intercept the
transmission between the smartphone and the
Privacy issues arise when organizations can
electronically track an individual's daily
activities, locations visited, and purchases.
Mobile payment solutions allow consumers to
easily make retail payments while redeeming
coupons and offers. Marketers benefit by knowing
past purchase behavior and combining it with
real time geographic information about
consumers. Consumers will need to weigh the pros
and cons to determine if the security and
privacy risks outweigh the rewards.
application security audits help
organizations identify, manage, and reduce their
risks. Formal and documented
a top down approach to managing security risks.
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Tagss: mobile payment | smartphone payment |
cell phone payment | electronic wallet | risks