Google has begun to roll out the next generation of payment method. It is called Google Wallet, a revolutionary way to pay using your mobile phone. The technology uses Near Field Communication (NFC) to pay by simply tapping your phone onto or within two inches of a NFC receiver. The big question on everyone’s mind is how safe will it be.
NFC technology already exists with many credit and debit cards. The Pay Pass NFC receiver can be found in hundreds of thousands of convenience stores, gas stations and retail outlets. The technology has proven to work well even though it can still be an extremely easy way for a thief to use your card. If someone steals your wallet they can ring up Pay Pass purchases until you cancel the card.
Google Wallet will be an Android App that you would install onto your phone and link to your existing credit or debit card. You will need to set up an account with Google Wallet and enter your card information in order to use the service. Google Wallet also allows you to use a prepaid payment plan where you can purchase credits without having to use directly link a card. At the time of this article Google Wallet is only available to users who have a Sprint Nexus S 4G.
Using NFC technology on a cell phone seems to be a likely progression in NFC payments. However, the security risks greatly increase when using a mobile phone versus a credit/debit card. Mobile phones offer many additional ways for cyber thieves to steal your information and make fraudulent purchases. A credit/debit card is a standalone NFC payment method whereas a mobile NFC offers many additional vulernabilites.
For example, your phone is obviously used to access the internet, make calls, receive calls, access email, download apps and much more. This multiple method of communication opens many security loopholes that Google Wallet will need to address. Cyber thieves may figure out a way to hack into your phone and gather payment data. Perhaps a bogus email could install malware or a malicious app could charge your bank account for purchases that you never made.
Mobile malware is growing at a massive rate. As more people surf the internet on their phones and browsing malicious websites, mobile malware can be installed onto your phone operating system. Android malware has increased astronomically and thousands of new Android malware samples are being discovered. The loosely policed Android Marketplace is also a favorite distribution channel for malware creators. Malware creators entice users with a free app which contains malware. If a user unknowingly installs the malicious app the malware installs with it.
Also, since your phone is obviously a communication device, what deters thieves from simply scanning phones in a public setting, gather vital information in the process? Google Wallet claims that the NFC payment method will be inactive as long as the phone is locked and that you can also set a pin in order to further secure NFC payments. Unfortunately this is not a guarantee that cyber thieves wont find a way to gather NFC technology without your knowledge.
Another worry is pretty simple: What happens if your phone runs out of battery life? Are you left completely broke until you can recharge your phone? If you lose your phone it could be the same, or worse, than losing a wallet. Many of these scenarios will play out and solutions will arise.
The point of this article is not to scare anyone or deter anyone from using Google Wallet. Google is a technologically advanced company that seems to always be a step ahead. Google has certainly tested mobile NFC payments against numerous potential threats and may have closed or set up security measures for any possible loopholes.
The real test will be when Google Wallet goes mainstream. Google Wallet will offer many benefits including instant coupons, spending rewards, and a great tool for merchants. Let’s all hope that Google Wallet becomes a success.
Google Wallet Links
