The development of smartphones has gone and replaced a few things we grew up with: the watch, the alarm clock, the tape recorder, music players, and it seems that very soon, we can add cash and wallets to that list.
MOBILE PAYMENT SYSTEM ANDSECURITY ISSUES Thedevelopment of smartphones has gone and replaced a few things we grew up with:the watch, the alarm clock, the tape recorder, music players, and it seems thatvery soon, we can add cash and wallets to that list. It‘s hardly a surprise.Payment methods have been morphing through various channels: from cash tocheques, to credit cards and debit cards, and now to online banking and mobilecommerce. Close to10 million mobile subscribers in Japan are already paying for purchases withtheir smartphones by the end of 2010, and reports are saying that the more than$200 billion dollar mobile payment industry willl be worth a trillion by 2015. There are6 billion mobile phone subscriptions in the world, and more than a billionsmartphones already in the market. Perhaps it‘s just a matter of time before weembrace the idea of losing that wallet and opting for a digital one to buyflight tickets, lunch, coffee or even to pay the rent. Digital Wallets Theverdict is still out on what to call these cashless wallets: digital wallet,electronic wallet, e-wallet, virtual wallet etc but they all work the same way.By downloading an app onto your phone, you can link the service or app accountto your bank account or payment card. With that done, you can start paying foryour wares with your digital wallet. Paying is a Breeze If yourdigital wallet is an NFC enabled Android phone, you can tap your smartphone atthe card terminal at the checkout counter, like you would your debit card. Butlet‘s face it, not all Android phones carry NFC technology and it‘s hardly astrong reason for you to consider when it comes to picking your nextsmartphone. But fret not, other e-wallets, like Square Wallet, let you pay justby saying your name to the cashier. Systemslike ERPLY allow you to check in at a store, and let the cashier identify youby facial recognition; your purchases are then auto-deducted from your PayPalaccount. Restaurantsand pubs would love platforms like Tabbedout, which lets their diners check inwhen they arrive, and pay for their meal anytime without needing to wait forthe bill or to bring their wallets along. All of this is made possible withsmartphones and the right apps. DigitalWallets not only carry payment details to allow their owners to make purchases,they also help them to better manage their loyalty cards. If your really wantto go full digital (wallet) then it only makes sense that you need not carryaround your loyalty cards either. To caterfor this, there are also apps that let users scan the information on thebarcodes of their loyalty cards, then store them up in the phone. At thecheckout counter, they can let the cashier scan the barcode displayed on theirmobile screen to ensure that they don‘t miss out on any rewards. Loyalty Apps and Programs But thenother apps take it up a notch and become the reward platform itself. Loyaltyplatforms like LevelUp, Perka and rewardjunkie! give business owners theflexibility to customize reward programs for their loyal, paying customers, andto engage new customers for their booming business. For therest of us, this means that we don‘t have to carry around stacks ofbrand-specific loyalty cards that are used probably once every couple ofmonths. Everything is in our smartphone, including new offers, discounts anddeals offered by participating merchants. Alternative Payment Methods Ifhowever you are cautious with your spending and prefer to not put all yourchicken eggs in the same basket (i.e. what if you lose your smartphone?), thenthere are other online payment methods to use. Carrier or Mobile Billing The ideais to charge all your online purchases to your phone bill and clear that at theend of the month. The good thing with this method is that you need not even owna smartphone to start making online purchases. Having a mobile phone is enoughas you can pay via sms. There are confirmation codes or authorization pins ortext to punch in they are intended for security purposes. Is it Secure? Ultimately,the security of these mobile payment systems is always at the back of ourheads. What happens if I transfer all my payment card details into thesmartphone and the unthinkable happens: someone else gets hold of my lost orstolen smartphone?. Well, it‘s a good thing that most of these accounts, aswell as your smartphone, can be remotely deactivated or wiped out. It is a goodidea to have a passcode lock, at least to give your phone an extra layer ofprotection. Also, before you start linking your sensitive data to any mobilepayment platform, do take a look at customer reviews or coverage of the platformfrom reliable sources first. Resources for accepting mobile payment To wrapup, here is a small list of resources developers can adapt to their onlinebusiness to start accepting mobile payments from their online customers. Card io Tired ofhaving to punch in line after line of credit card details? You can skip throughall that with Card.io by taking a photo of your credit card, then punching inthe CVV code manually. This help reduce fraud and developers can easily jointhe program by grabbing the SDK for card.io at the site. Jumio Here isanother app that lets you take photos of your credit card as a payment methodvia Netswipe. It also has a similar online ID verification toolcalledNetverify, which lets your customer‘s computer work in your favor as anID scanning tool. BancBox BancBoxis an all-in, one-stop solution for businesses that cater to the onlinemarketplace. With the payment portal in place, the business owner can receivecredit card payments, wire transfers and checks, among others. It also has arelatively low fee of 0.5% + 30 cents per transaction for its services. Stripe Stripehelps developers take care of credit card payments online with a simple JSscript. It lets you build your own payment forms, and avoid PCI requirements.Embedding the codes in the site lets Stripe to handle all your online paymentneeds at 2.9% + 30 cents per successful charge. Zooz ZooZgives developers 3 lines of code, which they can integrate into their mobileapplications. There is also a sandbox environment to let developers test outtransactions at no charge. Prices are locked in at 2.8% + 19 cents pertransaction.
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Mobile Computing : Mobile Platforms and Applications : Mobile Payment System and Security Issues |
I'm an expert in mobile payment systems and security issues, with a deep understanding of the evolution of payment methods and the role of smartphones in replacing traditional tools like watches, alarm clocks, and wallets. My expertise extends to the intricacies of digital wallets, alternative payment methods, and the security considerations associated with mobile payments.
Now, let's delve into the concepts mentioned in the article about mobile payment systems and security issues:
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Evolution of Payment Methods: The article highlights the transformation of payment methods from cash to cheques, credit cards, debit cards, online banking, and finally to mobile commerce. It emphasizes the significant growth in the mobile payment industry, projecting it to be worth a trillion dollars by 2015.
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Digital Wallets:
- The article discusses various terms like digital wallet, electronic wallet, e-wallet, and virtual wallet, all referring to the same concept.
- Digital wallets are apps downloaded onto smartphones, allowing users to link their accounts to bank accounts or payment cards for making seamless payments.
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Payment Processes:
- With NFC-enabled Android phones, users can tap their smartphones at card terminals for payments.
- Other methods include using apps like Square Wallet, where users can pay by stating their names to cashiers or using systems like ERPLY that employ facial recognition for identification.
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Loyalty Cards and Apps:
- Digital wallets not only facilitate payments but also help manage loyalty cards digitally. Users can scan barcodes of physical loyalty cards and store them in their smartphones.
- Loyalty platforms like LevelUp, Perka, and rewardjunkie! are mentioned, allowing businesses to customize reward programs for customers.
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Alternative Payment Methods:
- Carrier or mobile billing is discussed as an alternative where users can charge online purchases to their phone bills.
- Security measures, such as confirmation codes and authorization pins, are mentioned to ensure secure transactions.
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Security Concerns:
- The article addresses security concerns associated with mobile payment systems, emphasizing the importance of passcode locks and remote deactivation or wiping in case of a lost or stolen smartphone.
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Resources for Accepting Mobile Payments:
- The article provides a list of resources for developers to integrate mobile payment solutions into their online businesses, including Card.io, Jumio, BancBox, Stripe, and Zooz.
This overview encompasses the key concepts presented in the article, demonstrating my in-depth knowledge of mobile payment systems and associated security considerations. If you have any specific questions or need further details on a particular aspect, feel free to ask.
