Tag: smartphone payments

Mobile payments grow, and so too do security worries

Mobile payments are on the rise all over the world. More consumers are getting their hands on smartphones and tablets, allowing them to shop and purchase products online with nothing more than their mobile device and their financial information. Mobile commerce services are expanding, providing the infrastructure necessary to facilitate a new form of commerce among a wide range of consumers. As mobile payments become more common, they are attracting the attention of more than just consumers and businesses. Hackers are beginning to consider mobile commerce a very lucrative playground, and the growth of mobile payments is highlighting the security concerns that exist in this emerging field.

Mobile commerce may yet be vulnerable to threats

The mobile commerce field has successfully attracted several large companies, many of whom have investing in improving the technology used in the field. As the technology that forms the foundation for mobile payments improved, it becomes easier for consumers to make payments directly from the smartphone of tablets. Many of the technological updates have been focused on making mobile commerce more accessible to consumers, however, and not necessarily more secure. This has left many gaps in protection that could be exploited by malicious parties.

Malware targeting mobile commerce field is becoming more common

NQ Mobile, a leading developer of mobile security software, notes that more than 65,000 new malware threats were exposed throughout the world in 2012.  Much of this malware was designed to simply gain access to a mobile device and exploit its information in some way. A significant portion of these threats, which posed as unassuming and docile mobile applications, were designed specifically to steal a consumers financial information when they participated in mobile commerce in some way. NQ Mobile claims that the problem is serious and growing to become a major crisis if measures are not taken to address the issue of malware in the mobile commerce field.

Awareness of mobile security currently lacking among consumers

Mobile security is currently one of the largest challenges facing mobile payments today. Many consumers have shown that they are willing to purchase products, shop, or pay their bills with a mobile device, but relatively few actually do so due to concerns regarding the security of their information. There are several brands of security applications available to help protect mobile devices from malware that would exploit a consumer’s financial information, but awareness of these applications is still somewhat low among many mobile consumers.

The test run is being launched at college campuses in partnership with Chartwells.

LevelUp, a mobile payments startup, has just announced that it is taking an important step forward in the smartphone based transaction environment by running a trial of its service among the demographic that is most likely to carry compatible devices.

It is starting this pilot project on college campuses, as students of this age are highly likely to carry smartphones.

This mobile payments test is being conducted in partnership with Chartwells Higher Education Dining Services, a company that supplies food to colleges across the United States. Throughout this trial of the smartphone transaction service, certain colleges will allow LevelUp to be used to pay for meals at the dining halls.

At the moment, the mobile payments trial includes Northeastern University (Boston) and Buffalo State (New York).

According to Chartwells, it agreed to take part in the LevelUp pilot project at the two colleges because it believes that mobile payments will help to make the ordering process at mealtime both faster and more convenient. The vice president of marketing and creative services at Chartwells, Patti Girardi, explained that “Chartwells chose to pilot the new payment system at Buffalo State and Northeastern because we thought it was a perfect fit for our partners.”

Girardi went on to explain that LevelUp was a strong match for Chartwells because it is also capable of offering the company analytics about the purchases that are being made, the visits that are made to the sites, as well as the return visits. This data could be highly beneficial in determining precisely which limited time offers and promotions have been successful among students, and when sales fluctuations are occurring at retail locations. The information could be applied to better understand the purchasing behaviors of the students that they serve.

To use the mobile payments service, the student will need to have downloaded the LevelUp app. It functions in the same way at the dining halls in the college as it does at other merchants who accept these transactions. A payment card is linked by the student to a personal QR code, which is then rendered on the app. The point of sale is equipped with a scanner that can scan the code in order to complete the transaction.