Mobile payment systems have gained a bad reputation due to past issues with identity verification. However, in recent years digital security has significantly improved and is now more secure than manual store methods.
Digital payment technology is advancing at a very rapid pace and can provide users with tools through third party applications that can be used for anything from transferring money to processing payments.
Identity Verification Tools
Electronic signatures allow you to sign contracts via your tablet and smart phone from home. Processes like this present security concerns; however, modern electronic signatures are becoming increasingly difficult to forge. This is because they are cross-referenced with a huge library of signatures, which are then graded for authenticity.
Other methods of authentication include visual scanning, which is often used alongside electronic signatures and sent via SSL through a secure 128-bit encryption. When combined, these identity verification methods are more secure than standard e-commerce verification methods.
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If you process online payments yourself, you can also issue digitally signed receipts. In the past, e-Receipts were very easy to duplicate and alter; however, new e-Receipts for mobile devices are far more difficult to fake. This not only makes the whole payment process more convenient, but will give customers peace of mind.
Digital receipt validation has to undergo the same process as digital purchasing. Merchants must verify their identity to show customers that they are securely conducting business. This is especially beneficial as digital payment processing becomes faster and more efficient. According to Vocalink, 11 real-time payment systems have been built during the last 10 years. Due to heavy demand among governments, businesses, payers and receivers, real-time digital payment processing is set to become the standard and is decreasing the importance of cash.
Modern smartphones can be easily encrypted to ensure users can’t access them without a password. This can be extremely beneficial if you store sensitive information on your mobile device. In addition, most new smartphones have built-in tracking features which allow you to locate the device if it gets stolen. Third party applications may also be able to completely wipe your data from a remote location. This feature alone can make digital payment processing via a mobile device more secure than wallets, which give thieves instant access to sensitive information.
According to eDigitalResearch, over the past 12 months (March 2014) awareness of contactless mobile payment systems have doubled. In addition, the average spending amount via these systems has increased by £26.84 per transaction. This goes to show that more and more people are starting to accept digital payment systems as a secure way of purchasing and transferring cash.
There will always be people out there trying to commit fraud; however, digital payment systems and encryption methods are making it increasingly difficult. While these innovative tools shouldn’t give you an excuse to be less vigilant, it’s nice to know that your mobile device will keep your finances safe and secure if you become subject to fraudulent activity.