![]() ![]() It remains one of the most secure ways to conduct financial transactions. ![]() Mobile wallets, on the other hand, rely on near-field communication (NFC) that transmits data within a very close range. ![]() If a hacker gets the information from the card or wallet, they can create cloned cards. Because many of these transactions happen without a receipt, it is difficult for the owner to prove the charges were fraudulent.Ĭontactless credit cards use radio frequency identification (RFID) to transmit the data, and hackers have been successful in making fake scanners or using card skimmers designed to steal data transmitted via RFID. A phone without the proper security features in place makes it easy for anyone to ring up purchases without detection. Because you don’t need a PIN, a lost credit card or stolen device potentially gives a criminal easy access to your account. With Convenience Comes RiskĬontactless payment is convenient, but like any technology, it comes with both mobile security and data privacy risks. government allowed citizens to receive their relief checks through direct deposit via an app. Apps like Venmo, Zelle and PayPal, as well as company-owned payment options, are more frequently preferred by consumers. Expect this to change as more customers feel that using their phone and contactless mobile payments is the safest way to exchange money.įurther, don’t expect that credit card companies are the only players in this contactless exchange. The move to digital payments has been slow for small and mid-size businesses (SMBs), which often lag behind enterprises when it comes to digital transformation and cybersecurity enhancements. Non-contact forms of payment have been put to use mostly by corporations. Consumers, Mastercard CEO Ajay Banga told Forbes, are “looking for a quick way to get in and out of stores without exchanging cash, touching terminals or anything else.” But given this shift to using our phones for payment, are organizations doing enough to ensure mobile security? The Rising Popularity of Contactless PaymentĬonsumers are driving the push toward contactless payment, with credit card companies revealing double-digit increases in its use during the first quarter of 2020. The more they can conduct business with their phone, the better, for convenience and efficiency. For example, event management asks patrons not to bring bags or purses and to empty their pockets at metal detectors in order to streamline traffic flow at gates and ticket booths.Ĭonsumers are minimizing what they carry, which means less cash on hand. Organizations have been steadily increasing reliance on digital options and implementing new regulations for all sorts of interactions. We’ve been building to this moment, if you think about it. Both companies and consumers are looking for ways to conduct business with as little physical interaction as possible during in-person transactions. Series: Disaster Recovery and Business Continuity During COVID-19Ĭontactless payment first arrived in the 1990s and is now having its moment. ![]()
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