Mobile Payments Security – concerns, issues, threats, models and measures

One of the biggest reason why cash has still reigned supreme for purchases is the percieved safety it brings. It limits the potential damage to the hard currency one is carrying in her wallet. For many late stage adopters of plastic payment systems, secuirty has been a concern. Same is happening right now for Mobile Payments.

Why is security a concern in Mobile Payments?

Any financial transaction involving out-flow of funds without over-the-counter transactions typically weighs heavily on consumer’s mind due to the risks involved. Mobile payments are no different.

The security concerns are aggravated in case of mobile payments, because the ancillary infrastructure is something that the consumer uses for many other purposes. And in many instances the consumer has seen a part of this infrastructure break. E.g. consumers would have experienced first hand their mobile phones conking off, or heard of virus attacks which erased or corrupted the phone’s memory. In contrast for debit or credit cards, the consumers would have rarely heard or experienced wire-tapping or cloning first hand.