Not content with managing almost every aspect of our daily life, it looks as if smartphones are poised to become our main method of paying for our purchases. Businesses are constantly striving to find new ways to make it easy for customers to pay, while at the same time reassuring them that their personal and financial data is safe.
At present there are still a number of security issues associated with making mobile payments. It remains easier to compromise a smartphone, which is designed to do a multitude of tasks and is therefore vulnerable to malicious software – whereas a payment card is designed specifically to handle financial transactions.
However, with constantly-improving biometric capability, identity and credentials checks and transaction initiation, smartphones are becoming more secure and increasingly overtaking cards as people’s preferred way of paying. Payment cards suffer from relatively insecure four-digit PINs, a lack of display screens and terminals that are vulnerable to relay attacks.
This change in consumer payment preference is resulting in a battle for supremacy between banks and financial technology companies, with the latter currently setting the pace.