In the rush to capture the next big thing in digital payments, some of the major fintech players are betting it all on mobile payment. Services and platforms that allow users to make on-the-go payments on their smartphones, like Apple Pay and Google Wallet, are making up an increasingly large part of daily life.
On its face, it’s no surprise that mobile payment is changing the game. In its current incarnation, mobile payment is a convenient way to make real-life purchases without having to carry around a physical wallet. Digital-first payment platforms also allow for easy integration with online banking and financial planning applications.
For all the advantages of mobile payment, however, industry experts warn that the technology still suffers from significant vulnerabilities that have yet to be addressed by current mobile payment platforms. In addition to the lack of mobile payment options at a large proportion of brick-and-mortar retailers, there are considerable security concerns posed by a user carrying around their financial data in an easy-to-steal device in their pocket. Without robust security measures, when a phone set up for mobile payment is stolen or hacked, the risk of mobile payment services may outweigh the rewards.