How can we ensure the safety of our wallets from E-payment in the age of Hacking

How can we ensure the safety of our wallets from E-payment in the age of Hacking

Smart Phone Payment image

Payment made by your Smart Phone

Last week, I was sitting in a Coffee Cafe, with a few of my friends, I watched a car pull up into the drive-through, and the gentleman took their smart phone and waved it over a smart phone reader which deducted the cost of his coffee from his Starbucks card which was inside of his smart phone as an app.

That was a pretty cool trick, as it appeared to me because I had never earlier heard about this pretty cool app of any of the smart phones, it just goes to show you that in the future your smart phone will be an all-in-one device, and will also serve as your credit card, and your customer loyalty card at the grocery store, and all the other businesses that you shop that. There’s only one problem with all of this, and that is  related with the security of your smart phone, and the fact that the hackers can break-in with this technology too.

As I nearly knew nothing about this new technology of the smartphones, I did a small research on this topic and found many interesting facts about it. The one which used to be going on was being used nearly for the last 7 years. it was the Car-Pool. In which a small group of friends or people used to hire a taxi and to pay the bill amount was deducted from their cell phone. The cell phone required not to be a smartphone. I was amazed. I found few more articles which might be useful for you. They are mentioned later in this article along with the name of the writer.

There are so many components to all this, you have your 3G offering wireless company, the maker of the smart phone, and all the software programmers to create the apps. Therefore there are too many chances for laps in the security of your samrt phone, and unless these transactions are 100% secure, someone can break-in to your phone, and therefore they’ll have access to your bank account as well.

On July 7, 2011 Google officially announced the end of the of the wallet, which shouldn’t be too surprising considering all the partnerships being announced between smart phone manufacturers, cell phone companies, and banks. On May 2011 there as an interesting piece in a Guardian article titled; “Google Wallet: A Big Deal or Another Buzz? Google is right – replacing credit cards with smarphones is a great idea, but will it work?” by Jean-Louis Gassee.

There was an interesting article by Adam Hoffman of (Electronic Receivables Department at CitiGroup) in Global Finance in June of 2011 which was extremely interesting as he was discussing the future of electronic payments. The article was titled “What’s Next in the World of e-Bills and e-Payments,” and he reminded the readers of the incredible future these technologies will have and what that means to changes in money flow.

This is a quite incredible stuff, and these new technologies are totally leading-edge, but we’ve already seen the challenges and security holes in nearly all of the smart phones and their operating systems. How can consumers feel safe, and until they do how can the industry including the banking industry, credit card sector, and the makers of these devices convince the public that it’s okay and safe to use electronic payments in the present age of hacking? Indeed I hope you will please consider all this and think on it.


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