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Are Smartphone Payment Methods as Secure as Credit Cards?

Mobile phone payment methods are something that is starting to become a mainstream ability not just a novelty ability for the early tech adopters. Mobile phone payment methods have become mainstream and are no longer just a novelty for the early tech adopters.

By Davichi Marketing

For this reason, we are regularly asked if these payment apps are as secure as traditional credit cards. In short, the answer would be yes but it does get a little more complicated than that. So, let’s break down a few benefits and concerns so you can make an educated decision.

The first thing you will need to remember is that losing your mobile phone will be just like losing a credit card. Just like with tap and go, you will be open to the risk of someone using your device to make an unauthorised purchase, but there is one major difference. Most payment apps require your phone to be unlocked or for you to authenticate with the app to authorise payment.  Make sure you have a pin on your smartphone or require a fingerprint scan as this will help to make the payment app option more secure and help to protect other information on your device.

Man using his mobile
 

Furthermore, when making purchases your real card number/account number is not used to process the payment. Instead,  payment apps will store them in an encrypted format and use a special token system to authorise payments, making them the more secure option. It is very important however to enter new account information for your payment wallet while connected to a trusted network. Don’t do this via a public or free Wi-Fi service – it is just asking for a malicious actor to spoof the connection and steal your details as you enter them in the app.

 
Man using a credit card

One risk exclusive to payment apps is the possibility of the device or account getting breached by a malicious actor. The mobile or the platform account could be breached leaving you open for theft or unauthorised purchases. There is also a risk of the device becoming infected with a virus or credentials being stolen by a screen scraper or key logger.

In our opinion, the increased security payment apps bring to the table outweighs the risks. Mobile payment methods are like any system, you just need to take the right precautions to ensure you are as secure as possible and don’t take unnecessary risks that might jeopardise security.

So, the main takeaway?

All things considered, are smartphone payment methods as secure as credit cards? Yes, they are as secure as credit cards and are probably a step in the right direction to being even more secure. So stop carrying around a wallet full of cards or cash and put it all in a smartphone payment app. Less to carry around and also more secure. It’s a win-win.

Need more information?

For more information on cyber security, Click Contact Us, or call us on +61 7 3124 6059 and speak to a Davichi Representative Today!

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