Tag: mobile payments

Arkadi Kuhlmann is starting a new smartphone based service that is being called ZenBanx.

The founder of ING Dierct, Arkadi Kuhlmann, had been out of the public eye for quite some time, but has recently entered into a mobile banking venture with a new partner, Duca Financial Services Credit Union.

As was the case in his last financial services venture, Kuhlmann is seeking to offer an alternative to the standard.

ZenBanx is designed to provide a cheaper and easier form of mobile banking that will allow for foreign currency exchanges, transfers, and other types of transaction. According to Mr. Kuhlmann explained that the pitch is a smartphone based “regulated bank account with a multi-currency capability” that is “designed to let money travel as freely as humans.” ING Direct Canada was a company that was launched in 1997 and that expanded successfully a few years afterward into the U.S.

ZenBanx is a mobile banking venture in which Kuhlmann has been participating since 2012.

ING Groep NV sold ING Direct Canada to the Bank of Nova Scotia in 2012 for $3.1 billion. Kuhlmann stated that using this service would give customers the ability to save in as many as 5 different currency positions, as well as the ability to exchange among them. He also said that customers would be able to send money internationally in a way that is far less expensive and less difficult than the current options that are available to consumers.

At the opening of this mobile payments service, the currencies that will be available for exchange and transfer will be the U.S., Canadian, Singapore, and Honk Kong dollar, the British pound, the Euro, the Japanese Yen, and the Indian Rupee.

Kuhlmann spoke of this mobile banking service and his interpretation of ZenBanx by saying that “I think banking and money hasn’t really been able to keep up with a lot of the needs now,” adding that “You and I can move freely around the world, but moving money has become costly and tedious.” Through his past in the financial sector, he has considerable experience in building and working with a less expensive model of banking.

Mobile security threats may not be as serious in the mobile payments space as they seem

Security has become a major concern in the mobile commerce space, but security firm Kaspersky Labs suggest that security may not be as big of a problem as some would claim. The firm notes that there has been a significant increase in the prevalence of mobile malware, especially in the banking sector. The security issues that exist in the mobile payments space, however, are still “fairly minimal,” suggesting that mobile commerce may be a much safer space than some believe it to be.

Mobile payments are not exposed to the same security threats as the banking sector

Kaspersky Labs notes that consumers participating in mobile commerce are not experiencing the same risks as those that are on traditional devices, such as laptops or desktop computers. This has to do with the relative youth of the mobile commerce sector. Because this sector is still in a state of infancy, malicious software has not yet had an opportunity to thrive therein. By comparison, the banking sector is quite old and has been involved in the technology space for several years now and this time has allowed malicious groups to focus their efforts on certain vulnerable areas.

New trends are emerging that could compromise mobile security

While mobile payments may not be exposed to serious risks, there are still dangerous trends emerging in this space. Phishing Trojans are becoming more common in the mobile space. These malicious programs are designed to obtain the personal information of their targets, gaining access to bank accounts and exploiting other financial information. Such programs are likely to become more common and more sophisticated as the mobile commerce space matures.

Consumers can take steps to protect themselves and their important information

Consumers can keep themselves and their information safe through a variety of measures. Using anti-virus applications from reputable organizations, such as Kaspersky Labs, can help people protect themselves from malware. The increasing prevalence of biometric technology may also introduce more security to the mobile commerce space. This technology leverages biological information, such as a fingerprint, to protect a mobile device.