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Payment security: Consumers increasingly make purchases on mobile devices
When smartphones first emerged on the market, one company leveraged the phrase "There's an app for that" in their advertisements. Fast forward a few years, and it seems the tagline has never been more correct. Today, users are relying on their mobile devices more than ever, including not only personal and entertaining pursuits, but business activities as well.
Impact of mobile payments
This trend also extends into the banking and ecommerce world, where individuals are increasingly utilizing mobile shopping and financial applications to check account balances, pay bills and make purchases. In fact, according to a BI Intelligence study transactions made over mobile hardware comprised approximately 2 percent of all credit and debit spending in the U.S., and 4 percent of worldwide purchases, stated Business Insider.
Furthermore, this movement will only increase in the near future. A recent WorldPay study found that mobile payment practices will multiply six-fold in comparison to purchases made in 2012, stated Mobile Payments Today. Two years ago, users carrying out mobile transactions created $18 billion in spending on wireless platforms, however, WorldPay estimated that by 2017, this figure will reach $117 billion.
How to secure mobile payments
However, as more consumers look to carry out financial activities on their smartphones, laptops and tablets, it is critical that these activities are processed in a secure environment. Banks and ecommerce companies must take certain security aspects into consideration when building their mobile platforms to ensure that clients feel safe when using them. According to the SANS Institute, a Federal Reserve study noted that 48 percent of participants that do not make mobile transactions said their main reasoning behind this was that they were "concerned about the security" of mobile payment platforms. For this reason, it is critical that organizations leveraging wireless financial activity create a safe environment for these practices to boost adoption.
One effective strategy is to lock down sensitive customer information with encryption technology. This protective measure can be achieved through the use of an SSL certificate and is an important technique for safeguarding client data like payment card details and other information.
In addition, The MCommercePro advised using identification protection to prevent unauthorized third party access to secure platforms. By utilizing security measures like two factor authentication, organizations can ensure that the person attempting to access the system is who they claim to be. This technology requires the user to not only enter traditional login information, but asks that the individual link another device or account so that a single-use code can be sent and entered in for verification.
Furthermore, any outsourced or third parties involved in the transaction process should be thoroughly vetted. Administrators should seek details into these groups' security measures to ensure a continuously secure payment environment.
Overall, IT auditor Nikolaos Zacharopoulos noted that organizations need to provide convenience as well as security.
"Security will be a major driver for the adoption of mobile payments, as trust plays a very important role when the customer decides to use a new payment tool," Zacharopoulos said.
Protect data in transit with an SSL certificate today.
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