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What is a mobile wallet?

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Some say there will be a day when the wallet you carry in your pocket or purse will become obsolete. Technology is evolving in a way that will likely eliminate all our credit cards, store cards, and IDs. We will use our mobile devices as our primary means of commerce and identification. The technology behind mobile wallet combines near field communications (NFC) and applications. Depending on which is used, a user might need to wave their phone near a reader to make a payment or verify identification, or they may open an app and simply click a button.

Mobile wallet is still in its infancy but the technology is quickly gaining steam. Google introduced Google Wallet, a mobile app that turns your Android phone into a wallet by securely storing your credit cards on your phone, and it has gained popularity by using promotional offers. When you make a purchase from a brick-and-mortar store that accepts Google Wallet, you not only pay but you can also redeem discount and promotional offers quickly by simply tapping your phone at the point of sale.

Google Wallet facilitates online shopping by securely storing your credit cards for use on the Internet as well. Paying is quick, easy, and safe when you make a purchase from an online merchant that accepts Google Wallet. If you choose to make your phone a wallet, I seriously suggest a mobile security product as a companion to help protect your device against viruses and malware.

Protect it. Just like your leather wallet, your mobile wallet is portable, it is subject to being lost or stolen and the data contained can be accessed or the applications running may have access to additional information, resulting in your data being compromised. Any time you are using a mobile wallet remember that wireless is inherently insecure. Use a secure virtual private network (VPN) such as the free Hotspot Shield VPN that protects your identity by ensuring that all web transactions (shopping, filling out forms, downloads, etc.) are secured through HTTPS.

Robert Siciliano is an Identity Theft Expert to Hotspot Shield VPN. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him discussing internet and wireless security on Good Morning America. Disclosures.

Mobile Wallets—How I Make Mobile Payments Securely

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Some say there will be a day when the wallet you carry in your pocket or purse will become obsolete. The plan is to eliminate all our credit cards, store cards, and IDs and use our mobile phones as our primary means of commerce and identification. The technology behind mobile wallet or mobile POS (point of sale) basically turns your smartphone into a smart debit or credit card. Soon you will be able to pay for almost anything via your mobile device.

When mobile wallets and mPOS become more common, thieves will certainly look for ways to empty them. For instance, it’s possible for attackers to use technologies that allow them to “eavesdrop” on your payments or steal and transmit your credentials by extending the range of the wireless signal. Your data may also be manipulated or corrupted by an attacker.

So how do I conduct safe mobile payments?

Pay attention to your credit card statements to check that you are paying for what you actually purchased.

Only download mobile payment applications from a reputable app store. Check user reviews of the app and make sure to read to app’s privacy policy on what data of yours it is accessing and sharing.

Don’t do any mobile transactions over unsecured Wi-Fi connection. It’s much more secure to use your mobile data network.

Keep your mobile software current. This includes the latest updates for your operating system, mobile browser and mobile security software like McAfee Mobile Security.

Using your phone to pay for things simply by tapping it or swiping it at a store’s checkout terminal may sound like a convenience of the future, but it’s already here and you need to be prepared for this.

 

Robert Siciliano is an Online Security Evangelist to McAfee. Watch him discussing information he found on used electronic devices YouTube. (Disclosures)

How will NFC change the mobile wallet?

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NFC is an acronym for near field communication, a wireless technology that allows devices to talk to each other. In the case of a mobile wallet application, those devices would be a mobile phone and a point of sale device at a checkout counter.

USA Today reports that the number of NFC handsets is set to increase from about 34 million this year to about 80 million next year. Gartner estimates that growth in handsets will exceed 100 million in 2012, and that that 50% of smartphones will have NFC capability by 2015.

The short list of big players, which includes Google, Citibank, MasterCard, Gemalto, First Data, VeriFone, Samsung, Sprint, AT&T, T-Mobile, Verizon and  Isis, are all deploying some version of a mobile wallet. Isis’s website promises, “Mobile wallet will eliminate the need to carry cash, credit and debit cards, reward cards, coupons, tickets, and transit passes, fundamentally changing how you shop, pay, and save. All with your phone.” And all powered by NFC.

NFC can also be used to connect online gamers. Within social networking websites, NFC can facilitate the distribution of coupons that can be scanned at in-store terminals.

Soon, we will see online retailers embrace the potential benefits of NFC in order to create effective loyalty programs, supported by online advertising and social media campaigns

With full deployment, near field communication will make every day transactions incredibly convenient. If you think your cell phone is your everything today, wait until you see what’s coming next!

Robert Siciliano, personal security expert contributor to Just Ask Gemalto. Disclosures

Which Will Make a Bigger Splash in 2012, Mobile Wallet or EMV?

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During the latter half of the past decade, a heated battle has been fought around the world to determine which payment method will take center stage in the coming years. Many believe mobile payment will leapfrog what is known as EMV, which stands for Euro MC/Visa, or chip and PIN credit card technology, and that soon enough chip and PIN technology will go the way of the magnetic striped credit card.

Certainly, there are many major companies that have wagered heavily on the presumed success of their chosen technology, and these companies have a vested interest in the failure of their rivals. Personally, I think there is more than enough room for both Mobile Wallet and EMV.

Google recently introduced Google Wallet, a mobile app that turns your phone into a wallet by securely storing your credit cards on your phone, as well as promotional offers. When you make a purchase from a brick-and-mortar store that accepts Google Wallet, you can pay and redeem offers quickly by simply tapping your phone at the point of sale.

Google Wallet facilitates online shopping by securely storing your credit cards for use on the Internet as well. Paying is quick, easy, and safe when you make a purchase from an online merchant that accepts Google Wallet.

Meanwhile, Visa has announced plans to “accelerate the migration to EMV contact and contactless chip technology in the United States.” The company intends to encourage investments in infrastructure necessary to accept and process both new forms of payment technology. Jim McCarthy, Visa’s global head of product, explains, “We will speed up the adoption of mobile payments as well as improve international interoperability and security. As NFC mobile payments and other chip-based emerging technologies are poised to take off in the coming years, we are taking steps today to create a commercial framework that will support growth opportunities and create value for all participants in the payment chain.”

The fact that Visa has opted to recognize and support the development of both mobile payment and EMV affirms the likelihood of both technologies’ success.

Robert Siciliano, personal security expert contributor to Just Ask Gemalto. Disclosures