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Should banks be responsible for securing mobile payments?

November 5, 2012

There's no denying that mobile credit card processing is becoming increasingly popular. However, industry experts say that security concerns may hamper future growth.

There’s no denying that mobile credit card processing is becoming increasingly popular. However, industry experts say that security concerns may hamper future growth.

BankTech.com reports that a survey conducted at this year’s Mobile World Congress found 38 percent believe the leading obstacle to large-scale adoption of mobile payments is the perception that transferring personal financial information over a mobile device is not safe.

According to BankInfoSecurity.com, a recent study conducted by Javelin Strategy and Research found that consumers expect banks and credit unions to secure emerging payment tools such as mobile wallets, regardless of whether they actually provide the platforms.

“When you combine the growing number of financial transactions and the growth in mobile malware, it’s big,” Javelin’s Alphonse Pascual told the website. “When it comes to emerging payments, especially mobile payments, security is defined by the technologies, and that’s part of the problem. Financial institutions need to ensure that the mobile wallet solutions they are backing have the support of their consumers. But they need to make sure it’s done right, with security in mind, up front.”

Educating consumers on security features is also important, according to BankTech.com.

Additionally, the financial industry should develop best practices that foster collaboration and communication between mobile operators, financial institutions and enterprises to drive mass-market adoption of mobile payments.
 

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