Author: JT

NatWest mobile payments service has an unfortunate glitch

| March 2, 2016

Consumers continue to worry about the security issues associated with mobile commerce

Mobile commerce is growing in popularity, but this does not mean that new payment platforms are perfect. Over the past few years, consumers interested in mobile payments have expressed concern regarding security issues. Primarily, consumers are worried that their financial information is at risk of being exploited if they make use of a mobile payment service. This has been true in the past, as malicious groups have targeted such services and have gained access to sensitive information.

Some cash through Paym is going to the wrong accounts

NatWest, the United Kingdom’s largest retail and commercial bank, admits that mobile payments are not perfect. The bank’s own service, called Paym, is included in this, with the bank noting that, at times, money could be put into the wrong account due to a glitch. Before consumers can use Paym to make a purchase, they must funnel money into their accounts that are linked to the service. The glitch caused this money to be sent to accounts that were not linked to the service, much to the surprise of the owner of that bank account. NatWest is now working on fixing this problem in order to ensure that money goes where it is meant to.

Paym has become very popular among consumers

Mobile Payments ProblemPaym launched in April of 2014 and more than $150 million in payments have been sent through the service since that time. Approximately 40 million people use the service, making it one of the most popular services of its kind in the United Kingdom. Paym does not only work with NatWest accounts, of course, and those with accounts with Barclays, Lloyds Bank, and several other organizations can use the service.

Glitch highlights security concerns that exist in the mobile commerce space

The glitch suffered by Paym highlights ongoing concerns regarding the mobile commerce sector. Because new payment systems are electronic and, in many cases, automated, they are susceptible to faults in software. Glitches can lead to a major financial impact for consumers and businesses alike, which could result in liability issues for organizations responsible for these payment systems.

MasterCard partners with other companies to improve the security of mobile payments

| February 26, 2016

MasterCard announces partnership with Coin and WiseKey

MasterCard has become heavily involved in the mobile payments space and the company is looking to make this sector more secure than it has ever been. MasterCard has announced that it has partnered with Coin and WiseKey. The partnership with Coin may be unexpected, as the company has encountered trouble with financial institutions in the past in regards to its smart card, which emulated credit and debit cards. Despite this, however, MasterCard believes that its new partnerships will improve the security of mobile commerce.

Partnership aims to launch new system to ensure the security of mobile commerce

Through the partnership, a new developer program will be launched, providing access to an application program interface (API) to efficiently handle mobile transactions made through wearable devices as well as smartphones and tablets. MasterCard and Coin will work together to find ways to efficiently provide digitized card information that merchants can use to authenticate purchases. This is intended to track digital purchases for security purposes, allowing MasterCard and other companies to effectively crack down on fraud.

Wearable devices will have a role to play in the digital commerce space and MasterCard wants these devices to be safe

Mobile Security PartnershipThe partnership with WiseKey, a company that specializes in security, focuses specifically on wearable devices. These devices have yet to become mainstream, but the launch of products like Apple Watch have highlighted how they can be used to make mobile payments. MasterCard and WiseKey want to ensure that the transactions made through these devices is secure, which may improve their popularity among consumers that want to use these devices to pay for products in physical stores.

Security continues to be a main priority for those involved in mobile commerce

Security has long been a major issue in the mobile commerce space. Many consumers have avoided making mobile transactions because of security concerns, believing that their sensitive information would be put at risk. Several companies have begun improving the security of the mobile commerce space in order to increase confidence among consumers. MasterCard, as well as other financial organizations, have made significant progress in this regard over the past few years.