So why is Apple Pay the “chosen one”? Well as we reviewed in yesterday’s blog, this specialized type of transaction offers some key advantages over the other Mobile Wallets, and are as follows:
- The token becomes a proxy for the actual credit card number and is also generated for each specific iPhone/iPad (keep in mind, that this process is in addition to the tokens that are generated for each and every transaction that takes place by the end user).
- Making sure that the highest levels of Security are incorporated into the token is ultimately up to the credit card issuer-this not the responsibility of Apple or even the end user. Since credit card companies are already under the “magnifying glass” for their Security practices in general, there is a very high probability that the best layers of Security are already being afforded to the tokens, and the process that is used to create them.
- The tokens are never stored on the iOS Operating System, the Apple Pay Servers, and are not even backed up on the iCloud. Because of this, your credit card issuer can also disable the magnetic strip functionality on your credit card, just as an extra precaution in case your credit card number does indeed get stolen or hijacked. The downside to this is that you will have to contact your credit card issuer in case you want to use your credit card outside of Apple Pay.
- The use of tokens almost totally eliminates the types and kinds of Cyber-attacks that occur on using the credit card magnetic strip in traditional transactions. These include Man in the Middle Attacks and Credit Card Skimming.
In summary, this series of blogs has reviewed the concepts behind what a Mobile Wallet is, with a special emphasis given upon Apple Pay. It is important to keep in mind that as the world is turning more towards a digital means of conducting business transactions, the use of Mobile Wallets is expected to rise as well.
The two dominant Mobile Wallet payment structures are that of Google Wallet and Apple Pay. It is the latter which is used the most widely, given the huge market saturation of both the iPad and the iPhone. As it was reviewed, the setup is a very quick process, and it is also very easy to use as well.
The biggest advantage of using a Mobile Wallet is that of convenience. Payments can be made and processed in just a matter of seconds, versus the minutes it could take when your credit card is used in the traditional means.
Security experts have noted that Apple has done a very good job in creating a very secure and robust Apple Pay environment. But despite this, it too is prone to its Security vulnerabilities, just like anything else. This will be examined in the next series of blogs.