With all the talk about mobile payment systems lately, credit cards have not received their fair share of media attention. Shopping with a credit card is fun, and consumers will likely not forget that anytime soon. Recent news shows that mobile payment platforms are not infallible, and credit cards still have the ability to impress.
Apple Pay wasn’t hacked, but it isn’t perfect
According to eWeek, Apple Pay was recently used in fraudulent activity. Cyber thieves took stolen credit card numbers, entered them into Apple Pay and made illegal purchases at stores. They did not need the actual cards or owners’ signatures to do this. Approximately 80 percent of the fraudulent purchases were made with smartphones bought at Apple stores. Apple Pay’s security remains intact, but now it is apparent the technology can be used by thieves.
The involvement of Apple Pay in illegal activity is not good for the company’s reputation. Until now, Apple Pay has been hailed as a secure and effective way to make purchases because of its use of tokenization. The technology does not store credit card information on devices and generates a unique code for each transaction. Apple Pay was not hacked, but it was used to perpetuate credit card fraud.
Considering the mass security breaches that occurred last year at retailers Home Depot and Best Buy, any sign of weakness in the technology will be alarming to consumers. Some optimists believed mobile payment technology could do no wrong, but this is apparently not the case. It is important to note that the stolen credit cards were obtained by thieves long before they were entered into Apple Pay. The technology did not allow for personal information to be stolen. However, the mobile payment system made it possible for those stolen cards to be used somewhat inconspicuously.
Credit card makeovers coming soon
New chip-based cards are coming to the United States. Embedded microchips offer added security over traditional magnetic strips because of the encryption they use. Additionally, if card owners decide to enable PIN verification instead of a signature, they will have a two-tiered system of protection against having their information stolen. It should be pointed out that chip-based cards and Apple Pay are similar in that they allow contactless payments and take away the risks associated with magnetic strip cards.
If that wasn’t enough CNN reported that a bank in the United Arab Emirates is now marketing scented credit cards for women. Al Hilal Bank recently introduced a new credit card to the market that is perfumed, offering a freshly-scented shopping experience to consumers. Bank customers can choose from a selection of signature scents and spruce up their cards. Al Hilal Bank believes the new cards will appeal to young and ambitious women looking for a way to stand out.
“Today’s modern Emirati woman wants to send out a strong message about her individuality and her capacity to become a productive member of society while staying true to her heritage,” said Mariam Yousef Ahli, head of corporate communications at the bank, according to the news source.
Obviously, scented cards do not offer added security, but they make clear that credit cards are not done being reinvented. It is likely that millions of consumers around the world are not ready to adopt mobile payment systems as their primary method of making purchases. Credit cards will soon become more secure in the U.S., and if the story in the U.A.E is any indication for trends to come, they may become more fashionable as well.Back To Blog