It’s understandable people are nervous about the security aspects of new technologies. If history is anything to go by, a little caution is common sense.
However, according to The Australian Financial Review, paying by smartphone is safer than using a credit card.
The newspaper quotes David Lindberg, who is executive general manager of cards and payments at the Commonwealth Bank of Australia – the parent company of New Zealand’s ASB Bank.
Lindberg told the reporter phones are more secure than plastic cards because you need pin numbers to get at the information. He also said if a phone is lost or stolen, the information can be remotely wiped.
Mobile phone payment systems are already being tested in New Zealand – see our earlier blog post on the plans. They promise to make life easier for people wanting to pay for goods and services without using cash or plastic. It’s fast, safe and means you don’t have to carry a conventional wallet and a phone.
Many of the recent smartphones introduced here now come with built-in near field communications (NFC) chips which make contactless payments possible. They also include levels of transaction security although the exact nature of any security scheme offered in New Zealand isn’t yet decided.
The bank-owned eftpos operator Paymark is establishing a nationwide contactless payment network and expects to have the technology in use within a year.
How it works
We could tell you, but this is more fun…